• EUR/NZD edged lower on Wednesday after the Federal Reserve raised interest rates as expected and signalled further rate increases in the coming months.
•The Federal Reserve raised its benchmark rate to 3.75%-4.00%, with Chair Kevin Warsh joining a unanimous decision that underscored continued concerns over elevated U.S. inflation..
•New Fed projections showed 16 of 18 policymakers expect at least one more 25-basis-point rate hike by year-end, while two see rates remaining unchanged. Warsh apparently did not submit a rate projection again.
•The Fed’s latest policy statement and projections signal scope for tighter monetary policy, with the policy rate seen rising to 4.00%-4.25% by year-end and remaining at that level through 2027.
• Immediate resistance is located at 2.0117 (Sep 16th high), any close above will push the pair towards 2.021(23.6%fib).
• Immediate support is seen at 2.0007(38.2% fib) and break below could take the pair towards 1.9843(50% fib).
Recommendation: Good to buy around 2.0000 with stop loss of 1.9950 and target price of 2.0080
