Euro bounce short-lived
EUR/USD is trading at $1.1296, up 0.16% at the London open following Wednesday’s statement from the FOMC, which despite not alluding to any bullish signals for a rate hike saw dollar pairs remain relatively firm. The overriding rhetoric from the FOMC was very much a continued policy of patience in regards to an interest rate hike.
The FOMC also went on to reaffirm that a rate hike will be very much led by economic data. EUR/USD has continued to reverse from its $1.1423 high (27 January) breaking momentarily below key downside support at $1.1291. Price action is currently trading around this level, supported higher by the pair’s 100-hour moving average level of $1.1280.
Should a sustained move below key support be seen then the next clear downside target is placed at $1.1186. However, should downside support hold then a retesting of $1.1374 should come back into play.