FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the the dollar sold-off following the latest US Federal Reserve economic policy decision, much more dovish than initially anticipated.
Key Quotes:
“The Central Bank has lowered its growth projections for this 2015, not a shocker considering the results of the first quarter, but in its press conference, Mrs. Yellen has made it clear that the Central Bank is in no rush to raise rates, as the FOMC needs “more decisive evidence” of labor market strength and rising inflation before making a move. Furthermore, she added that wage growth is still subdued and that some cyclical weakness in the job market remains”.
“The EUR/USD pair reached a daily high of 1.1357 after being as low as 1.1204 earlier in the day, with the 1 hour chart maintaining a strong bullish bias, as the price has advanced well above its moving averages that anyway remain in tight range around 1.1240/50, whilst the technical indicators head sharply higher above their mid-lines, losing partially their upward strength in overbought territory.”
“In the 4 hours chart, the price has advanced above its 20 SMA, whilst the technical indicators are now losing their upward potential after crossing their mid-lines towards the downside. Despite the latest sharp advance, the pair needs to extend beyond the 1.1385 region, where the price stalled twice in the last month, to confirm additional gains, whilst the lost of the 1.1300 figure should see the price returning to the 1.1250 region”.
(Market News Provided by FXstreet)