EUR/USD, what a day!
I wrote in my FOMC preview, that FED will not hike and that droping of the magic word ‘patience’ will not change anything in the market for the US dollar, and only specific actions in tightening monetary policy will help to boost the US currencie. Otherwise, the most benefit from todays decision will have euro, this is what happend, +400 pips ‘jump’ in a favor of the euro! EUR/USD opened the day at 1.0596 and until the FOMC meeting the pair have already aproach 1.0670/80, the first restistance from March 12. After the decision and during the press conference, the pair tested outer trendline and boosted high after Yellen’s dovish talk, in short, hike rates are not near! The par fly high for more then 400 pips and stopped exactly at the strong daily down trendline, at 1.1000, after wich the sellers and profit taking returned the pair down to support at 1.0810/20. We didn’t see a rebound like this one here for so many months and I was writing about this in last couple of days, the shorts are squeezed! What a day! On the way up, first resistance is placed at 1.0900/10, the previous resistance from March 09. and H4MA100, second at 1.1000!