EUR/USD breaks below 1.1400 as Fed’s raises rates
- EUR/USD moves to the downside amid a higher US dollar following FOMC statement.
- Federal Reserve hikes rates to 2.25%-2.50% as expected; Powell’s press conference next.
The EUR/USD pair moved to the downside after the Federal Reserve delivered a “dovish” rate hike. The pair was trading around 1.1430 and dropped quickly below 1.1400 following the release of the statement and the updated projections. It bottomed at 1.1380, approaching Asian session lows.
The US central bank, as expected rose the key interest rate to 2.25%-2.50%. Regarding forecasts, signaled now two rate hikes for 2019 versus three, seen in September estimates. The tone and the statement could be seen as not as dovish as expected, so the US dollar rose across the board. The DXY erased losses, equity prices in Wall Street turned to the downside and gold tumbled.
EUR/USD Levels to watch
To the upside, the critical resistance levels could be placed at 1.1445/50, followed by 1.1470/75 (Nov 20 high) and 1.1495/1.1500 (Nov 7 high). On the flip side, support might now be seen at 1.1380 followed by 1.1355/60 (Dec 17 high) and 1.1330 (Dec 13 low).