Fresh bids emerged at the resistance-turned support Aug 2015 highs in the European session, allowing the EUR/USD pair to attempt a minor-recovery back towards 1.1750 levels.
EUR/USD: 1.1800 still on sight?
The main currency pair is seen reversing intraday losses, as broad based relief rally seen in the US dollar seems to have run out steam amid stalled recovery in Treasury yields, following the overnight Fed outcome-led slump. The USD index now trades +0.06% higher at 93.35, having stalled its recovery near 93.45.
Earlier in Asia, the EUR/USD pair rallied hard and hit the highest levels since Jan 2015 at 1.1777, as the greenback extended losses on the back of a less hawkish Fed outcome. The Fed left its monetary policy settings unchanged at its policy meeting that concluded yesterday.
However, Fed’s softer language in the statement regarding inflation running ‘below 2%’ instead of the previous ‘somewhat below 2%’, is what actually disappointed the hawks.
Looking ahead, the major will get influenced by the US durable goods data, jobless claims and goods trade balance data slated for release later in the NA session.
EUR/USD Technical Set-up
According to Karen Jones, Analyst at Commerzbank noted: “EUR/USD is positive but cautious at major resistance: The market has reached major medium term resistance at 1.1713/36 the August 2015 high and long term Fibo, here we would look for signs of profit taking. The 200 week ma is also found in this vicinity at 1.1797. Nearby support is provided by the accelerated uptrend at 1.1529 and the 3 month uptrend at 1.1417 and while above here, there is scope for further gains.”
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