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18 Mar 2015
EUR/USD: Bullish post Dovish Fed - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the dollar took a dive across the board ahead of the FOMC Meeting outcome, and fell even lower afterwards, despite the US Federal Reserve decided to remove the word "patient" from their statement.
Key Quotes:
"The US FED, basically changed the wording once again, adding that they want to be "reasonably confident" on inflation before making a move, but took no other commitment. They also said that they have not yet decided the timing of the initial increase, but they have cleared that a rate hike will be probably discussed in the June meeting."
"The Central Bank also lowered its outlook for GDP and employment for this year and the next, sounding less optimistic about the economy than expected. The dollar sell-off took the EUR/USD up to 1.0799, a fresh 6-day high, from where the pair slowly retraced during Mrs. Yellen speech."
"Technically, the short term picture remains bullish, as the 1 hour chart shows that the price advanced well above the 100 and the 200 SMAs, whilst the technical indicators head strongly higher, despite being in overbought territory."
"In the 4 hours chart the price extended further above its 20 SMA, whilst indicators maintain their sharp bullish slopes well into positive territory, suggesting additional gains during the Asian session, particularly if the price extends above the 1.0800 mark."
Key Quotes:
"The US FED, basically changed the wording once again, adding that they want to be "reasonably confident" on inflation before making a move, but took no other commitment. They also said that they have not yet decided the timing of the initial increase, but they have cleared that a rate hike will be probably discussed in the June meeting."
"The Central Bank also lowered its outlook for GDP and employment for this year and the next, sounding less optimistic about the economy than expected. The dollar sell-off took the EUR/USD up to 1.0799, a fresh 6-day high, from where the pair slowly retraced during Mrs. Yellen speech."
"Technically, the short term picture remains bullish, as the 1 hour chart shows that the price advanced well above the 100 and the 200 SMAs, whilst the technical indicators head strongly higher, despite being in overbought territory."
"In the 4 hours chart the price extended further above its 20 SMA, whilst indicators maintain their sharp bullish slopes well into positive territory, suggesting additional gains during the Asian session, particularly if the price extends above the 1.0800 mark."