After a 0.75% rate cut on Tuesday to 0.25%, US now officially has the lowest interest rate amongst major currencies. This marks the first time the target rate has been below 1.00% in 50 years. The FOMC is said to be targeting a fed funds rate ranging from 0.00% to 0.25% and. It looks to be following the foot step of Japan? Table above from dailymarkets.com
The aggressive rate cut has sent the US dollar diving, although technically speaking, the chart was already showing a rounded topping pattern around late Nov / early Dec when it is unable to break resistance @ 88 and MACD showing negative divergence. There is potential support at around 80. If it breaks further, next support level to look out for would be 76.
I have been monitoring the Forex market lately due to the high implied volatility in options and also due to personal reason, I've not been able to trade the US market at night (in Singapore) as much as I'd like to. Don't be surprise if you start hearing more about forex from me. For those interested, here's a free forex video on how to approach both trends and market timing in the forex markets using the EUR/USD as an example.