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EUR/USD could wake up from comatose state following Fed - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik suggests that EUR/USD could finally move after almost two weeks of stagnation on today's Fed monetary policy announcement.

Key quotes

"The FED will announce is monthly economic policy, and the US Central Bank is largely expected to trim another $10B from its QE, but major expectations are focused in a change in the wording of its statement."

"Words as 'significant' applied to risk and inflation, and 'considerable time' when it comes to rate hikes and employment pick up, will be the key for the greenback today."

"If the FED skips such wording, dollar should get a boost across the board, and the EUR lose any chance of recovering. If the wording stays however, the EUR/USD may pick up strongly and began a more sustainable upward correction."

"Technically, the 4 hours chart shows that price has posted higher lows daily basis, despite trading in a 100 pips range, with indicators maintaining a neutral stance as per holding around their midlines."

"The immediate static resistance stands at 1.2990 recent highs, with a price acceleration above it favoring a continuation up to 1.3040/50 price zone."

"Beyond this last, the pair may attempt approaching the 1.3100 figure, and a daily close near this last should signal further gains for the upcoming days."

"To the downside, price needs to extend below 1.2880 to confirm a bearish continuation, eyeing then fresh year lows in the1.2820/40 price zone."

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