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EUR/UD dumps on hawkish FOMC statement

FXStreet (Guatemala) - EUR/USD is trading at 1.2921, down -0.30% on the day, having posted a daily high at 1.2982 and low at 1.2897.

The EUR had been flat to yesterday’s US session’s close leading into today’s Fed, but with an overall hawkish statement, the EUR/USD has dumped to test the 1.2900 handle on the release of the Fed decision to keep rates on hold and having reduced their asset purchasing programme to $10B from $15B. They are however keeping the considerable time pledge for low rates post QE. The pair is now likely to be volatile over the course of FOMC events as traders will be reacting to Yellen’s commentary in the press conference who has some explaining to do in regards to the dot chart in the changes in the 2016 numbers in respect of whether there is indeed a better outlook. From earlier on, domestic releases form the EZ today were mostly ignored even given that inflation was slightly higher than expected, with headline CPI reading 0.4%y/y and core at 0.9%y/y even though that those themselves are levels that markets should ultimately be concerned for.

EUR/USD near term levels

Current price is 1.2921, with resistance ahead at 1.2922 (Yesterday's Low), 1.2923 (Daily Classic S1), 1.2934 (Hourly 200 SMA, Weekly Classic PP) and 1.2943 (Hourly 100 SMA). Next support to the downside can be found at 1.2917 (Weekly Low), 1.2897 (Daily Low), 1.2895 (Monthly Low), 1.2895 (Annual Low) and 1.2895 (YTD Low).

United States Fed Pace of Treasury Purchase Program fell from previous $15B to $10

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