FxWirePro: EUR/USD trades lower on Fed rate hike, good to sell on rallies
EUR/USD declined form the high of 1.12957 yesterday after slightly hawkish tone of Fed. The pair hits the low of 1.11930 yesterday and closed at 1.11828. US Fed increased the interest rates by 25bpbs to 1.25% from 1% and…
EUR/USD declined form the high of 1.12957 yesterday after slightly hawkish tone of Fed. The pair hits the low of 1.11930 yesterday and closed at 1.11828.
US Fed increased the interest rates by 25bpbs to 1.25% from 1% and maintained its interest rate projections unchanged for 2017 and 2018. Greenback is supported by the fact that Fed didn’t change inflation forecast for 2018 and 2019.
Euro upside capped by major resistance around 1.1300 and any major bullishness can be seen above that level. Any break above that level will take the pair till 1.13660/1.14350.
On the lower side, near term support is around 1.11500-1.1160 (trend line support and 21- EMA) and any break below will drag the pair down till 1.1100 (May 30th 2017 low)/1.10750 (May 18th 2017 low).
It is good to sell on rallies around 1.1230 with SL around 1.1300 for the TP of 1.1100/1.1050.
