The most popular currency pair amongst Forex traders has been on a downward move over the last few weeks as investors continue to speculate one whether or not the US Federal Reserve is going to increase interest rates before the end of the year.

At the moment, it appears as though investors may not have to wait for long before seeing an uptick in interest rates after Janet Yellen’s latest Federal Reserve comment suggested that January could be the time investors have been waiting for. However, most investors had been expecting a December hike. This is probably why the USD appears to have been continually strengthening against major currencies over the last few weeks.

However, this might yet have created a perfect opportunity for bullish traders to act, especially those fancying a rebound on the most popular currency pair in forex trading, the EUR/USD. Based on recent forecasts, everything seemed to be pointing towards a Strong Sell sentiment, yet the pair just touched a new low since April this year.

The Strong Sell forecast had also been compounded by the fact that the US celebrated Thanksgiving on Thursday while markets closed early on Friday. This meant that no economic numbers were expected till this week while Europe had seen some major announcements including the release of the German GFK confidence survey. This could have pushed the EUR/USD currency pair towards the 1.0500 mark by the end of the week. However, after the US Federal reserve failed to confirm the increase of interest rates in December, this could give the EUR/USD bulls a lifeline.

The EUR/USD is the most volatile currency pair and this explains why players seeking to broker forex trading activity on their platforms feature it amongst their trading instruments across the board. This also explains why, even given the current circumstances, it is never certain on which direction the pair would take in the coming weeks and months. Nonetheless, a major economic event such as a postponement of an uptick in US interest rates would definitely tilt the balance, and that’s where those who get it right are likely to make a lot of money.