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EUR/USD quickly approaches 1.0900 as Fed leaves door open to 2015 rate hike

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/USD crumbled to fresh 2-month lows, breaking below several support levels and quickly approaching 1.0900 as the Fed decided to leave policy unchanged but left the door open for a rate hike in December.

    The Fed said it will determine if it is appropriate to raise rates “at its next meeting” after assessing progress toward its objectives of maximum employment and 2 percent inflation. The Fed also removed from the statement comments regarding global developments potentially restraining economic activity and inflation.

    EUR/USD lost around 170 pips after the release and bottomed out at 1.0897 in recent dealings. At time of writing, the pair is trading at 1.0905, recording a 1.3% loss on Wednesday.

    EUR/USD levels to watch

    As for technical levels, EUR/USD could find next supports at 1.0847 (Aug monthly low) and then 1.0808 (July monthly low). On the other hand, resistances on bounces could be faced at 1.0995 (Oct 23 low/former support level) and 1.1095 (Oct 28 high).
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