The dollar firmed against major currencies on Thursday following the U.S. Federal Reserve's upbeat assessment of the economic recovery and as its increased tolerance for higher inflation pushed Treasury yields higher. At its policy meeting, the Fed pledged to keep rates near zero until at least the end of 2023 when the labour market reaches "maximum employment" and inflation is on track to "moderately exceed" the 2% inflation target. The Fed also expects economic growth to improve from the coronavirus-induced drop they projected in June.
As mentioned yesterday; The EURUSD market shows short term peaking action, driving initial topping selloffs to test 1.1804 support. A close under 1.1800 alerts for a larger top/downturn and projects selloffs to 1.1720.
Today the market is staying contained within a bear flag formation. Yesterday’s drop off warns for a roll back to lower prices. A close under 1.1730 will rekindle bear trending selloffs that will attack under the 1.1610 swing low.