Euro after a quiet session trading around 1.12 managed to break higher at 1.1256 after the FED kept interest rates unchanged but removed the word “patient” from its statement as global trade war have an impact to US economy. Also in the statement changed the “solid” outlook for US economy to “moderate”. Eight members out of seventeen participating in FOMC believe it will be appropriate to cut interest rates by the end of 2019. Seven believe that two 25 basis point cuts by the end of the year will be appropriate while J. Bullard voted for a rate cut today.
On the technical side, bulls are building the short term momentum which collapsed the previous week after Draghi’s comments. Currently the pair hit the daily high at 1.1256 and retraced as the dust settled down. A break above can lead prices up to 1.1265 and the 100 day moving average. On the downside the pair will find support at 1.1216 the 50 day moving average while more bids will emerge at 1.12 round figure.