EUR/USD has enjoyed the dovish decision by the Federal Reserve and is already eyeing the next levels. Where next for the world's most popular currency pair?
The Technical Confluences Indicator shows that EUR/USD has broken above a dense cluster of lines at 1.1258 which now serves as support. This includes the Bollinger Band 15min-Lower, the previous daily high, the Pivot Point one-month R1, the BB 4h-Upper, the Fibonacci 38.2% one-week, and the PP 1d-R1.
This line may serve as a springboard to move up. Weak resistance awaits at 1.1293 where the Fibonacci 61.8% one-week awaits the pair.
Has the pound finally turned around? It has gained around 200 pips from the fresh five-month lows it hit on Tuesday – but the move has been fueled by the dollar's weakness rather than by Sterling strength.
The US Federal Reserve has signaled readiness to cut interest rates by scrapping its pledge to remain patient and warned about increasing uncertainties. Moreover, many members have indicated they see lower rates this year in the Fed's updated projections known as the "dot plot." The central bank is concerned about lower inflation – which it no longer characterizes as temporary – and trade tensions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.