The pair respected the 1.1375 level several times, but at last it was broken and the pair is trading above 1.14. The high so far is 1.1410 1.1416 with resistance awaiting at 1.1460 – the recovery high.
The dovish pressure from the Fed made its way to second wave of USD selling in the European session.
Another update: after breaking higher, we are seeing some consolidation, but the pair stabilizes above the critical level.
The euro does not seem to care about the lack of progress in the Greek crisis. In a speech to the German parliament, Chancellor Angela Merkel was not showing any signs of compromise, even though her tone was soft.
The Fed left policy unchanged and made it clear that the path of rate hikes will be very very gradual. This was reflected in the dot plot as well as in Yellen’s speech, where she said that the Fed needs to be confident – it needs more evidence that the recovery is on track.
Here is how it looks on the chart:
Here is a quick video wrap up
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