EURUSD was trading higher for the day before Fed monetary policy and made a high of 1.10757. The pair declined slightly by more than 50 pips after Fed cuts rates by 25 bps to 1.75% -2% as expected with one more rate cut projected this year. Fed forecasts show that officials split on the need for more easing with vote 7-3. The pair hits low of 1.10242 and is currently trading around 1.10305. The dot plot shows no additional rate cuts throughout the end of 2020.
US-10 year yield has jumped more than 2% from intraday low of 1.745% and spread narrowed to 3.5 bps from 7.6 bps.
On the flip side near term major support is around 1.0960 and any violation below will drag the pair till 1.09200/1.0880.
The near term major resistance is around 1.10925 (trend line resistance) and any break above will take the pair to next level till 1.1125/1.1180(100- day MA)/1.1250. Any minor trend reversal only above 1.12850.
It is good to sell on rallies around 1.1048-50 with SL around 1.1100 for the TP of 1.09250.
