EUR/USD jumps to 1.1250 on dovish FOMC
- Fed keeps rates unchanged as expected, one member voted for a rate cut.
- US Dollar drops sharply as the US central bank moves closer to ease monetary policy.
The EUR/USD pair rose from 1.1220 to 1.1253 after the Federal Reserve released its statement. It kept rates unchanged but removed the “patient” word from the statement and mentioned uncertainties have increased. Overall its a dovish message from the Fed that weighs on the US dollar. Now markets await Powell’s press conference to begin at 18:30.
The pair remains near the top with strong bullish momentum as the US dollar tumbles across the board. The DXY dropped to 97.38, approaching the weekly lows. US yields remain mostly unchanged and equity prices move modestly to the upside.
EUR/USD Technical levels
The pair is trading above the previous weekly highs and also on top of 1.1215/25 (confluence of the 20 and 55-day moving average) that has become now a support level. If the pair keeps rising above 1.1250 the next resistance is seen at 1.1265 (June 13 low) followed by 1.1300/05 (psychological / June 13 high / June 11 low).
The recent up-leg after the FOMC if confirmed could reinforced the recovery from the 2-week low it reached yesterday at 1.1180. A consolation on top of 1.1250 would strengthen the technical outlook in favor of the Euro.
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