© O Financista. EUR/USD falls and reverses its losses after the Fed meeting
Investing.com – The EUR/USD pair has fallen sharply in the face of a meeting of the Fed’s less dovish tone than what had been anticipated the market yesterday evening, but then quickly rebounds, to cancel all of its losses this morning (Thursday).
Recall that the EUR/USD pair has marked a low of 1.1364 yesterday evening, after a peak daily 1.1439, but moves back above 1.14, 1.1427, just at the time of the writing of this article.
The Fed has thus been less-dovish-than-expected, climbing the rates of Fed Funds by 0.25% as expected by investors, but above all by raising its growth forecasts for 2018 and 2019, and now its inflation forecasts unchanged, elements of which have been welcomed as a positive surprise, then, that many observers were anticipating a degradation of the forecasts.
In this context, the us Dollar has posted an initial reaction to the upside, with the Dollar Index, which clocked in at 96.56 yesterday in response to the Fed, before declining in the course of the night, to threaten to drop below 96.00 this morning.
Today, the news will be much less dense than in the past, but will still be likely to influence the EUR/USD, with an economic calendar that will be the occasion of the publication of the inscriptions weekly unemployment and the index of the Philadelphia Fed, at 14: 30.
From a graphical point of view, it should be noted that the fall of yesterday evening has not brought the pair below the key support of 1.1350. In addition, the EUR/USD quickly back above 1.14. The profile graph in the short term therefore remains bullish, in the face of a resistance zone at 1.1440-50, before 1.1475 and 1.15.
In case of return of the decline, 1.14 will be the first threshold to be monitored, and a break below it would tend to show a dominance of sellers. In this case, the low of yesterday at 1.1364, the moving average 200 hours to 1.1360, the moving average 100 hours at 1.1355 and the support of 1.1350 will form the first area of solid resistance, before 1.13, 1.1265-70, and 1.1215, the low annual 2018.
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