EUR/USD Drops After Fed Decision

EUR/USD Drops After Fed Decision

27 April 2016, 20:22
Roberto Jacobs

EUR/USD Drops After Fed Decision

EUR/USD dropped from 1.1343 (6-day high) back below 1.1300 after the decision of the Federal Reserve to leave rates unchanged as expected. The central bank removed the reference to global developments and boosted the US dollar across the board.

The pair bottomed at 1.1270, reaching a new fresh daily low but then rebounded sharply and hit a new hight at 1.1360. Market was volatile after the decision with the US dollar still looking for a clear direction. EUR/USD was trading around 1.1310, modestly below the level it had before the statement.

EUR/USD so far limited

So far the pair has reacted without breaking key short-term levels. To the upside, still remains below 1.1370 and also under 1.1330, where the 20-day moving average stands. On the downside, remain far from 1.1230 and it even has risen back above an hourly uptrend line that stands at 1.1295.


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