#EURUSD @ 1.08561 US Dollar collapses after the FOMC decision, DXY drops by more than 1%. (Pivot Orderbook analysis)
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- US Dollar collapses after the FOMC decision, DXY drops by more than 1%.
- Fed raises rates by 25 bps, as expected.
- EUR/USD rises a hundred pips, reaching the highest level since early February.
The pair currently trades last at 1.08561.
The previous day high was 1.0789 while the previous day low was 1.0704. The daily 38.2% Fib levels comes at 1.0756, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0736, expected to provide support.
The US Dollar is falling sharply on Wednesday following the Federal Reserve meeting. The EUR/USD has risen so far more than a hundred pips and printed monthly highs above 1.0900.
As expected, the US central bank raised rates by 25 bps to 4.75% – 5.00%. In the statement, the Fed sounded dovish, suggesting no clear path of action for the future.
During the press conference, Chair Powell said that tighter credit conditions can be seen as a substitute for interest rate hikes. “Disinflation is absolutely occurring”, he said. Regarding the “dot plot”, Powell explained that Fed’s officials do not see a rate cut for this year.
US bonds soared after the FOMC meeting, pushing the US Dollar to the downside. Wall Street indices are moving between gains and losses, without a clear direction. Markets are not moving in sync.
The weaker US Dollar is keeping EUR/USD around 1.0900, at the momentum. The pair peaked at 1.0911 and then pulled back to the 1.0860 area. It is rising for the fifth consecutive day.
Powell speech: Recent banking events will result in tighter credit conditions
Powell speech: Before banking stress, thought we would have to raise terminal rate
Powell speech: Tightening in credit conditions may mean monetary tightening has less work to do
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0881 at the time of writing. Pair opened at 1.0768 and is trading with a change of 1.05 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0881 |
| 1 | Today Daily Change | 0.0113 |
| 2 | Today Daily Change % | 1.0500 |
| 3 | Today daily open | 1.0768 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0632, 50 SMA 1.0729, 100 SMA @ 1.0586 and 200 SMA @ 1.0329.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0632 |
| 1 | Daily SMA50 | 1.0729 |
| 2 | Daily SMA100 | 1.0586 |
| 3 | Daily SMA200 | 1.0329 |
The previous day high was 1.0789 while the previous day low was 1.0704. The daily 38.2% Fib levels comes at 1.0756, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0736, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.0718, 1.0669, 1.0634
- Pivot resistance is noted at 1.0803, 1.0838, 1.0887
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0789 |
| Previous Daily Low | 1.0704 |
| Previous Weekly High | 1.0760 |
| Previous Weekly Low | 1.0516 |
| Previous Monthly High | 1.1033 |
| Previous Monthly Low | 1.0533 |
| Daily Fibonacci 38.2% | 1.0756 |
| Daily Fibonacci 61.8% | 1.0736 |
| Daily Pivot Point S1 | 1.0718 |
| Daily Pivot Point S2 | 1.0669 |
| Daily Pivot Point S3 | 1.0634 |
| Daily Pivot Point R1 | 1.0803 |
| Daily Pivot Point R2 | 1.0838 |
| Daily Pivot Point R3 | 1.0887 |
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