EURUSD trades higher and jumped more than 40 pips after Fed monetary policy. Fed has kept its rates unchanged as expected to downgraded growth forecast for Q1 to 2.6% form 2.9%. It hits intraday high of 1.14139 and is currently trading around 1.14119.
The yield spread between US and German bund has narrowed to 248 basis point from 259 basis point and for 2 year spread hits 11-month low to 294 basis point is supporting Euro.
On the higher side near term major resistance is around 1.14150 (trend line resistance) and any violation above will take the pair to next level till 1.1480 (200- day MA)/1.15145/1.15690.
The near term support is around 1.1364 (100- day MA) and any break below will drag the pair to next level till 1.1320/1.12970/1.12600. Any break below 1.12150 will drag the pair till 1.11760/1.1150.
It is good to buy on dips around 1.13800 with SL around 1.1335 for the TP of 1.1500/1.1565.
