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Fed Hikes Again: Is the Dollar Ready for Another Run?

VG Markets · 2026-09-17T02:14:44Z

Fed Hikes Again: Is the Dollar Ready for Another Run?

The dollar is starting to flex its muscles.

After the Fed delivered a 25-basis-point rate hike, EUR/USD has come under fresh pressure, falling to around 1.1462 and giving back much of its recent recovery.

The chart is turning increasingly bearish.

EUR/USD is now trading below its 20-, 50- and 100-day moving averages, while the RSI has dropped to around 32. Sellers are clearly back in control, although the pair is approaching oversold territory.

The big level now is 1.1450.

The pair is sitting just above its 200-day moving average near 1.1457, making this an important technical support zone. A clean break below it could open the door to further downside.

On the other hand, if buyers manage to defend this area, EUR/USD could attempt a short-term rebound. The first hurdle would be around 1.1530–1.1560, where several moving averages are now sitting.

But the bigger story is the Fed.

Higher U.S. rates give the dollar a fresh advantage, especially if the Fed keeps the door open to another hike while the ECB remains more cautious.

For now, the chart and the rate story are telling the same story: the dollar has momentum.

The question is whether 1.1450 holds — or the dollar pushes EUR/USD even lower.

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