• EUR/USD rises decisively above 1.2100 to the highest since February.
  • US dollar accelerates to the downside after the FOMC meeting.

The EUR/USD jumped to 1.2135 during Powell’s press conference, reaching the highest level since February 26. The pair remains above 1.2120, with the US dollar under pressure after the Fed meeting.

Fed keeps policy unchanged, Powell transitory explanation hits dollar

As expected, the Federal Reserve kept its interest rate near zero and the monthly pace of asset purchases unchanged. In the statement, it mentioned the economy and the labor market have strengthened.

During the press conference, Chair Powell explained that a transitory rise of inflation won’t warrant a rate hike. He said is not the time to start talking about reducing the purchase program.

His comments trigger more losses for the greenback, a rally in Wall Street, and in metals. Even emerging market currencies rose sharply during Powell’s press conference. Volatility remains elevated as the press conference goes on.

Follow our live coverage of the Fed's policy announcements and the market reaction.

US yields initially reacted to the upside after the statement's release and now are at daily lows. The 10-year rose toward 1.66% and then dropped to 1.61%, hitting a fresh daily low. The DXY fell to 90.55, the lowest in almost five weeks.

The EUR/USD heads for the highest daily close in two months, breaking a four-day consolidation range. Above 1.2135, the next resistance might be seen at 1.2150. A correction back below 1.2100 from current levels could point to a reversal, exposing the pair to further losses.

Technical levels

EUR/USD

Overview
Today last price 1.2102
Today Daily Change 0.0012
Today Daily Change % 0.10
Today daily open 1.209
 
Trends
Daily SMA20 1.1941
Daily SMA50 1.1955
Daily SMA100 1.2056
Daily SMA200 1.1936
 
Levels
Previous Daily High 1.2093
Previous Daily Low 1.2057
Previous Weekly High 1.21
Previous Weekly Low 1.1943
Previous Monthly High 1.2113
Previous Monthly Low 1.1704
Daily Fibonacci 38.2% 1.2079
Daily Fibonacci 61.8% 1.2071
Daily Pivot Point S1 1.2067
Daily Pivot Point S2 1.2044
Daily Pivot Point S3 1.203
Daily Pivot Point R1 1.2103
Daily Pivot Point R2 1.2116
Daily Pivot Point R3 1.2139

 

 

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