Dollar losing ground on Fed’s decision

The dollar has suffered high losses against major currencies  after the Federal Reserve Bank announcement yesterday signaling it is ready to accelerate the so called quantitative easing policy.
Sources say the Fed is planning to buy as much as $300 billion of U.S government bonds, an action which will  flood the market with dollar supply, causing the U.S currency to weaken considerably.

In one of the biggest single day advance moves EURUSD rallied by more than 500 pips, from 1.3000 to 1.3534 upon hearing the news yesterday. This morning the pair is still trading around 1.35 but we are yet to see signs of fatigue from this uptrend burst.

The next resistance area is 1.3806 with a good chance to be printed next week. Still, technical correction can take place- maybe a move back to the higher levels of 1.33, this correction, if indeed will occur, is likely to serve as an entry point for traders who are eager to join the party  :  take these factors into consideration before you enter your traders.

Ones again i will suggest you  trade with lower position size  in favor of dipper stop loss orders for as long as high volatility control’s the market.

Z.Georgi

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