FxWirePro: EUR/USD sell-off resumes after Fed raises rates
The EUR /USD pair dipped in the late US session on Wednesday as dollar strengthened across the board after the Federal Reserve as expected raised interest rates by a quarter point and pared its 2017 inflation view. The d…
The EUR /USD pair dipped in the late US session on Wednesday as dollar strengthened across the board after the Federal Reserve as expected raised interest rates by a quarter point and pared its 2017 inflation view.
The decision lifted the U.S. central bank's benchmark lending rate by a quarter percentage point to a target range of 1.00 percent to 1.25 percent as it proceeds with its first tightening cycle in more than a decade.
The U.S. central bank cited continued U.S. economic growth and job market strength, as it proceeds with its first tightening cycle in more than a decade. The Fed also announced it would begin cutting its holdings of bonds and other securities this year.
U.S. dollar rose after the Fed announcement, while the euro reversed its earlier gains.
The ongoing weakness is set to continue for this pair as the resistance level at 1.1300 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.1254, a break above this level would expose the pair to next resistance level at 1.1284.
To the downside, immediate support can be seen at 1.1206, a break below at this level will open the door towards next level at 1.1183.
