EUR/USD benefited quite a lot from the Fed’s relatively dovish tone towards rates. The pair climbed before the publication and jumped to resistance at 1.0910. It even made a flash move to 1.1025.
However, as European traders reach their desks, the tide is turning and the pair is down to 1.07. The low so far is 1.0695, but the pair managed to recapture this level. Update: a second wind lower follows and the new low is 1.0678. Can it return to lower levels soon?
Janet Yellen and her colleagues did express some worries about the “moderating†economic recovery. Did they want a pause in dollar strength? Perhaps. And more importantly, the median of forecasts for the FFR dropped from 1.125 to 0.625 at the end of 2015.
Some support is found at 1.0665, followed by 1.0560, which has proved pivotal a few times in the past. On the upside, 1.0825 is a resistance of sorts, and 1.0910 is higher resistance.
More:Â EUR/USD: 2 Channels For Outflows & 2 Factors To Define A Bottom
Here is the one hour chart that shows the fall from the highs. The pair is still significantly above pre-Fed levels. We can see the ranges before the move and the shoot higher.
