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FxWirePro: EURUSD trades lower after a dovish rate cut by Fed, good to sell on rallies

EURUSD has declined more than 20 pips after Fed monetary policy. The central bank lowers its rates by 25 bps as expected and removed the word "act as appropriate" from the statement. The FOMC members voted 8-2 unanimousl…

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FxWirePro: EURUSD trades lower after a dovish rate cut by Fed, good to sell on rallies
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EURUSD has declined more than 20 pips after Fed monetary policy. The central bank lowers its rates by 25 bps as expected and removed the word "act as appropriate" from the statement. The FOMC members voted 8-2 unanimously for cut expect Esther George and Eric Rosengren. The Fed was optimistic about the economy and said that the labor market is strong, the unemployment rate remained low.

 

 

US 10-year yield lost more than 1% after a minor jump to 1.815 %. The spread between US -10 and 2-year has narrowed by 2 bps.

 

On the flips side, near-term support is around 1.1070, any violation below will drag the pair down till 1.10370/1.100.

 

The resistance is around 1.1120, a convincing break above targets 1.1150/1.11780. Minor trend reversal only beyond 1.11780.

 

It is good to sell on rallies around 1.1120 with SL around 1.1178 for the TP of 1.100.

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