He EUR/USD has reacted to the Fed’s monetary policy decision to keep rates unchanged at 0.25% with a slight initial rally to 1.2128 that quickly reversed southward, driving the pair back towards the zone 1.2090/1.2100.
The Federal Reserve was pessimistic in its statement and willing to use its full range of tools for as long as necessary. Powell’s statement and subsequent words caused the euro to lose about 35 pips, sliding to the 1.2093 zone. At time of writing, the cross is trading above 1.2100, shedding 0.55% on the day.
He dollar, for its part, has rebounded measured by its DXY index, currently moving over 90.62 and gaining 0.48% daily. The american bags, instead, they suffer losses notable, with the Dow Jones losing 1.93%, the S&P 500 falling 2.51% and the Nasdaq losing 2.74%.
EUR / USD levels
To the downside, the first support appears at 1.2053, the bottom of January 18. A break would point to 1.2000, and lower to the 1.1925 / 30 zone, where the lows of November 30 and December 1, 2020 are.
To the upside, the pair would need to rebound solidly above 1.2100 to head back towards 1.2176, the January 26 high. Higher up, the main resistance is at 1.2222, the top of January 13.
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