– The pair picks up pace to the 1.1780/90 band following the FOMC decision.
– The greenback leaps to fresh daily lows and tests 94.15/10.
– The Federal Reserve delivered another 25 bp rate hike, matching consensus.
EUR/USD keeps the familiar range in the wake of the FOMC decision on rates and is now hovering over the 1.1780/90 band.
EUR/USD bid post-Fed
The pair’s consolidative stance remains unchanged after the Federal Reserve raised rates by 25 bps, taking the Fed Funds target to 2.00%-2.25%, matching the broad consensus.
Regarding the ‘dots plot’, 12 out of 16 members now see four rate hikes this year, while the Fed’s statement removed the word ‘accommodative’.
EUR/USD levels to watch
At the moment, the pair is gaining 0.12% at 1.1781 and a breakout of 1.1815 (high Sep.24) would target 1.1853 (monthly high Jun.14) en route to 1.1946 (200-day SMA). On the flip side, the next support lies at 1.1712 (10-day SMA) followed by 1.1664 (21-day SMA) and then 1.1526 (low Sep. 10).
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