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EUR/USD back above 1.1400 in the Fed aftermath

FXStreet (Córdoba) - EUR/USD picked up fresh momentum and regained 1.1400 as another wave of selling hit the dollar after Yellen finished her press conference.

After a brief phase of hesitation, EUR/USD gathered pace and broke through previous highs to score its strongest level in three weeks at 1.1440 in recent dealings. At time of writing, the pair is trading at 1.1435, up 1.30% on the day.

Fed holds fire but sees rate hike in 2015

Investors continue to assess Fed rhetoric. The FOMC decided to leave rates unchanged at 0-0.25% in light of heightened uncertainties abroad and softer path of inflation but most participants continue to see a rate hike this year. At a press conference Yellen emphasized the timing of the lift-off remains data dependent and every meeting is a “live meeting”.

EUR/USD levels to watch

On the upside, next resistances are seen at 1.1465 (May 15 high) and 1.1500 (psychological level) ahead of 1.1560 (Aug 26 high). On the downside, supports could be found at 1.1372 (Sep 14 high), 1.1285 (21-day SMA) and 1.1263 (10-day SMA).

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