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Advances Above $1.2100 as USD Remains Under Pressure Post FOMC

EUR
MNI (London)
  • Risk appetite back in play following last night's FOMC/Powell press conference with the USD under pressure across the board.
  • FOMC statement was in line with expectations, acknowledged improved economic activity and employment, though with a diminished caveat that risks to the economy remain. Powell said 'still not time to start talking about tapering'
  • Volatile reaction to the announcements, rate dipped to $1.2066 before it spiked to $1.2135 as Powell spoke, the rate closing the day at $1.2125.
  • Asia took over the baton of USD sales (markets thinned by the Tokyo holiday), edged EUR/USD to $1.2150 where it stalled.
  • Rate eased to $1.2124 before meeting renewed demand interest which edged it to $1.2136 ahead of the European open.
  • Support $1.2124/20, $1.2105/00 ahead of $1.2090/80, a break to open a deeper move toward $1.2060/45. Resistance $1.2150/55, $1.2167(1.618% swing 1.1990-1.1704) with the top of the 1.0% 10-dma envelope coming through at $1.2184(Feb26 high). Above here to expose $1.2197(76.4% $1.2349-1.1704 - 2021 range)
  • Germany state CPI's released through the morning ahead of pan-Germany CPI at 1200GMT. Spain CPI 0700GMT, Germany Unemployment 0755GMT, ECB M3 0800GMT, EZ Econ Confidence 0900GMT. ECB Guindos speaks at 0730GMT, Holzman 1300GMT.
  • US GDP, Core PCE, Weekly Claims 1230GMT, Pending Home Sales 1400GMT.
  • MNI Techs: EURUSD cleared the bear channel top drawn off the Jan 6 high Weds. The break confirms a resumption of the current uptrend and maintains a recovery towards 1.2184, Feb 26 high and the next key resistance at 1.2243, Feb 25 high. Moving average studies are again in a bull mode and reinforces the bullish theme. Initial support lies at 1.2056, Apr 28 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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