EUR/USD approaches 1.2000 on steady Fed

The pair attempts to regain the critical 1.20 level following the FOMC event.
USD stays well bid around the mid-92.00s post-Fed.
The Federal Reserve left interest rates unchanged at 1.50%-1.75%.

Pablo Piovano FXStreet

The single currency seems to have found some buying interest in the 1.1960 area in the wake of the FOMC decision today, lifting EUR/USD to the 1.1980/90 band.

EUR/USD supported near 1.1960

Spot is now recovering part of the ground lost in recent days after the Federal Reserve left its status quo unchanged at today’s meeting, with interest rates in the 1.50%-1.75% range, broadly in line with prior surveys.

The Committee now sees core consumer prices close to the Fed’s 2% target, while it appears somewhat dovish on growth prospects as the phrase ‘the economic outlook has strengthened in recent months’ was removed.

Members see the economy warranting further gradual hikes, while risks to economic outlook appear ‘roughly balanced’.

EUR/USD levels to watch

At the moment, the pair is losing 0.05% at 1.1987 and a break below 1.1953 (low May 2) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017). On the upside, the next hurdle emerges at 1.2033 (high May 2) seconded by 1.2155 (10-day sma) and finally 1.2210 (high Apr.26).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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