The EUR/USD has reacted to the monetary policy announcement of the United States Federal Reserve with a rise of 55 pips to 1.1965, but Powell’s words have taken it 20 pips higher, specifically to 1.1985, new three-day high.
The Fed has decided to keep its interest rates at 0.25% at its March meeting, and in its projections it has not changed in its intention to raise rates until 2023, although a greater number of members have opted for a first move in 2022 and 2023. However, Jerome Powell, President of the entity, has reinforced during his speech the idea that there will be no changes. The president has stressed that there is a long way to go to achieve employment and inflation targetstop priorities of the Federal Reserve, although it has acknowledged that upward pressure on prices could be seen as the economy continues to reopen.
The DXY dollar index has fallen sharply to 4-day lows at 91.39, while the 10-year US Treasury yields are down to 1.63% after reaching 1.68% in previous hours. US stocks show gains at this time, with the Dow Jones rising 0.59% and the S&P 500 0.36%. The Nasdaq is up 0.52%.
EUR / USD levels
With the pair trading at time of writing above 1.1966, gaining 0.54%, the next resistance to the upside appears very close at 1.1990, March 11 high. Above 1.2000, there is a barrier in the zone 1.2060 / 65, ceiling of March 4.
On the downside, initial support is at the 1.1880 / 85 region, where yesterday’s and today’s lows are. Further down, the 1.1835 level, the bottom of March 9, will be an important support.
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