EUR/USD surges beyond 1.2300 with Fed´s press conference

US Federal Reserve rose rates but left the dot-plot unchanged, sort of disappointing dollar's bulls.
EUR/USD re-attempts to surge above 1.2300, but still lags Pound, commodity-linked currencies.

Valeria Bednarik FXStreet

The EUR/USD pair jumped as high as 1.2319, pulled back, and regained the upside with the press conference, now challenging the mentioned high. The advance was triggered by Fed's monetary policy decision, as the Central Bank raised rates as expected, but left the dot-plot unchanged for this 2018, meaning policymakers only foresee two more rate hikes this year. Revisions to growth were only modest and for the next year and the following one, with GDP seen unchanged from previous estimates.

As the press conference begins, dollar bears returned, but the EUR remains among the weakest currencies across the board, with commodity-related ones being the best performers alongside with the Pound, boosted earlier on the day by UK employment figures.

Fed’s Powell said that unemployment rate remained low in Feb and that gradual hikes should continue to serve the economy well.

The EUR/USD pair has a strong resistance area around 1.2370/80 where it topped multiple times these last few days, alongside with a daily descendant trend line coming from this year high. Beyond it, the next resistance comes at 1.2410, where it found a ceiling last week. Supports are the 1.2260 region, ahead of 1.2220.

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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