The Dollar Meltdown and Rebound – What Did the Fed Do?

Talking Points:
– EURUSD trades back under 1.0700 after seeing 1.1000 yesterday.
– USDCAD finds triangle support, trades back to daily 8-EMA.
– See the March forex seasonality report for trends in the QE-era.

Yesterday produced the largest single-day rally in EURUSD since October 27, 2011, at the height of the Euro-Zone crisis. Subsequently, that also marked the turning point in the EURUSD uptrend, paving way for a selloff that lasted for the next nine-months. This time is different, however, with the Fed at the epicenter rather than the ECB. What might have the Fed done to provoke such a violent move in the greenback?

See the above video for technical considerations in EURUSD, GBPUSD, AUDUSD, and USDCAD.

Read more: Pre-FOMC Trade Setups in USD-pairs

— Written by Christopher Vecchio, Currency Strategist

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Source: Daily fx