EUR/USD jumps above 1.1450 to highest in 2 weeks as Fed moves to “patient” stance

• As expected, Fed leaves rates unchanged and point to keeping rates on hold.  
• Chairman Powell to hold a press conference at 19:30 GMT.  
• US Dollar tumbles across the board, and EUR/USD breaks above crucial level.  

The EUR/USD rose more than 50 pips in a few seconds following the decision and the statement of the Federal Reserve. It jumped from 1.1415 to 1.1470, reaching the highest level since January 15.  The euro is holding near the highs, with a robust bullish tone supported by a weaker US dollar. It broke the key short-term resistance level at 1.1450. A consolidation on top could point to more gains. The European currency also rose versus the pound.  

The Fed kept rates unchanged as expected and offered strong indications that further rate hikes are on hold. Also, the central bank mentioned that it is prepared to adjust its balance sheet normalization program. The change in the tone of the statement appears to be more to the dovish side than what markets were expecting. The US dollar dropped sharply across the board, even against commodity and emerging market currencies. In a few minutes, at 19:30 GMT, Fed’s Chair Powell will hold a press conference. Starting today, there will be a press conference every after FOMC meeting and not only following those where economic projections are released.  

EUR/USD Levels to watch  

To the upside, resistance levels might lie at 1.1480 (Jan 14 high), 1.1495 and 1.1515. On the flip side, Support levels might lie at 1.1450, 1.1420 and 1.1400/05 (Jan 30 low).