- Federal Reserve keeps rates unchanged at 1.50%-1.75% as expected.
- US Dollar Index holds at one-month lows while EUR/USD tests critical resistance at 1.1110.
The EUR/USD pair fell from near 1.1100 to 1.1087 after the Federal Reserve’s decision but then bounced back to the upside, hitting a fresh daily high at 1.1101. So far, price action remained limited across financial markets holding in recent ranges.
Fed in line with market expectations, also Powell?
After three rate cuts, the Fed kept, as expected, the key Fed Funds rate. The FOMC also released new economic projections. The “dot plot” (FOMC members rate projections) signals no moves during the next years.
Now, attention turns to the press conference Chairman Powell will offer at 19:30 GMT. His words could have an impact on markets.
Levels to watch
The EUR/USD is trading back near the 1.1100 area. A break above 1.1100/10 would likely trigger more gains, targeting 1.1125/30; above the next resistance is seen at 1.1145. On the downside, if the euro gets rejected again from above 1.1100 the US dollar would likely gain momentum. The key short-term support is located at 1.1065.
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