FxWirePro: EUR/USD consolidating around 1.0741, bias is bullish
The EUR/USD pair inched higher on Thursday as the dollar slumped following the Federal Reserve's interest rate hike and signal there would be no pick-up in the pace of tightening. The decision to lift the target overnigh…
The EUR/USD pair inched higher on Thursday as the dollar slumped following the Federal Reserve's interest rate hike and signal there would be no pick-up in the pace of tightening.
The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent marked a convincing step in the Fed's effort to return monetary policy to a more normal footing.
Fed policymakers noted that inflation was now "close" to the central bank's 2 percent target and that business investment had "firmed somewhat" after months of weakness.
However, they did not flag any plan to accelerate the pace of monetary tightening, with the policy-setting committee reiterating and Yellen emphasizing that future rate increases would be "gradual.
The ongoing upside is set to continue for this pair as the support level at 1.0686 is likely to act as strong barrier to the bears and push the pair towards higher side.
To the upside, the strong resistance can be seen at 1.0816 a break above will take the pair towards next resistance level at 1.0873.
To the downside, immediate support can be seen at 1.0706 levels, a break below will open the door towards next level at 1.0686.
