Fed Rate Hike Boosts Dollar, Weighs on Euro: Trading Opportunity Emerges

The Federal Reserve's recent interest rate hike has boosted the US dollar and weighed on the Euro currency. This trend is reflected in the December Euro currency futures, which have hit a six-week low and are currently trending down.

A closer look at the daily bar chart reveals that the moving average convergence divergence (MACD) indicator is in a bearish posture, with the blue MACD line below the red trigger line and both lines trending downward. This technical analysis suggests that the bears have the upper hand in the near term.

The fundamental factors supporting this trend include the Fed's hawkish comments on keeping inflation under control and the global energy crisis, which is disproportionately affecting the Euro zone economy compared to the US economy. As a result, traders may see a move below chart support at 1.1500 as a selling opportunity, with a downside price objective of 1.1150 or lower.