The Euro breaks above the 1.1450 resistance and rises towards the 1.1500 resistance level as the FOMC statement presented a more dovish Fed than what the market expected. Fed's Powell pointed out that the Fed moved towards a “patient” stance in regards to raising rates as inflationary pressures are low and global growth risks remain in place. Adding to the bearish rhetoric from the Fed, the FOMC statement suggested that the central bank will be patient with trimming its balance sheet and selling its US securities. For today, investors will continue digesting yesterday's US Federal Reserve news while also monitoring the set of economic data coming out of the EU.
The Euro breaks above the 13-period moving average and rallies towards the 1.1500 resistance level. Momentum is currently bullish as prices are trading above all three major moving averages. The rally is projected to continue if prices manage to break above the upper end of the current resistance level at 1.1524. The break above 1.1524 will pave the way for a rise towards the 1.1560 resistance level.
Support: 1.1450/ 1.1398
Resistance: 1.1524 / 1.1560