Rumors that the Fed will change its monetary policy in the near future influenced traders to sell the euro and bet on the strengthening of the US dollar. As a result, many short positions were opened in the market yesterday, which resulted in a 60-pip decline in EUR / USD.

Two buy signals emerged for the euro yesterday. The first is at 1.2175, which should have given quite a lot of profit since the MACD line, at that time, is located in the positive zone. Instead, it did not give the desired result and led to a loss of profit.

Although market volatility was low yesterday, several trading signals emerged for the EUR / USD pair. First is the signal to buy at 1.2194, which unfortunately brought losses.

Weak economic reports reduced demand for risky assets. As a result, the euro is starting to trade downwards in the market. To add to that, the current lockdown is affecting the outlook of the EU economy negatively, thereby limiting the upward potential in the euro. Such forces traders to close their long positions in EUR / USD.

Both linear regression channels turned to the downside on the 15-minute timeframe. However, the downward movement is not that strong. Yesterday, the US dollar managed to win back around 80 points. Thus, a consolidation below and a rebound from the Kijun-sen line is good for the bears, but they are in no hurry to take advantage of the bulls' chances.