FXE Drops. Watch This Support Level
This morning the Currencyshares Euro Trust(NYSE:FXE) is declining after the European Central Bank(ECB) raised their key bank lending rate by 25 basis points to 1.25 percent. This move by the ECB was already telegraphed by the market over the past month and today the FXE is declining lower by 0.70 cents to $142.00 share. The FXE will have intra-day support around the $141.70 area. This is a level where short term scalp traders can look for a bounce in the FXE.
When the FXE declines it can only mean that the U.S. Dollar Index is rising in price. This morning the U.S. Dollar Index is trading higher by 0.15 cents to $75.65 per contract. Traders must be aware that often the U.S. Dollar Index will start the morning higher and usually fade once the market opens in the U.S. for trading. That is actually occurring as I write this. If the U.S. Dollar Index declines the FXE could bounce before tagging the $141.70 support area.