Back

EUR/USD extends post-FOMC correction, wavers above 1.1400

FXStreet (Mumbai) - The EUR/USD pair continues to trade in a side-ways manner as we progress towards the early European morning, as the EUR bulls continue to appreciate the extension of the period of low rates in the US, as unannounced by the Fed yesterday.

EUR/USD retreated from multi-week peaks

The EUR/USD pair trades -0.25% lower at 1.1406, finding support at 1.1390 levels since early Asia. The main currency pair extends its corrective slide into the European morning, although remains in flat-lining near 1.14 handle, as markets keep the calm after the FOMC aftermath, still mulling the Fed’s verdict.

On Thursday, the EUR/USD pair jumped some 100 pips to fresh three-week highs at 1.1442, as the US dollar was heavily dumped after the Fed kept interest rates on hold for the 55th straight meeting, raising serious concerns over lower inflation and global economic uncertainties on the financial markets, stemming from China.

Looking ahead, traders are expected to remain cautious amid a data-dry trading calendar ahead while markets continue to assess the Fed’s decision.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1442 (Sept 17 High), above which gains could be extended to 1.1500 (Psychological) levels. On the flip side, support is seen at 1.1390 (Today’s Low) below which it could extend losses to 1.1361 (Aug 24 Low) levels.

Eurozone: Inflation to fall to 0.0% in September, pick up in Q4 – Nomura

Research Team at Nomura, expect Eurozone inflation to fall to zero percent levels in September before picking up in Q4 while the inflation over the rest of the year should be largely driven by energy price.
Read more Previous

EUR/GBP still above 0.7300 post-FOMC

The consolidative pattern in both the sterling and the single currency is prompting EUR/GBP to keep the trade above the 0.7300 handle on Friday...
Read more Next