On Wednesday the 19th of June, trading on the euro closed up. The euro rose to 1.1254 in the aftermath of the FOMC meeting. The Fed maintained the Federal Funds Rate within its current range of 2.25% - 2.50% as expected. In its accompanying statement, the regulator hinted that it could ease monetary policy if the economic outlook worsens.
Day’s news (GMT+3):
In Thursday’s Asian session, the euro continued its recovery to reach 1.1284. The bulls are approaching the 67th degree (1.1287), and are testing the U3 MA line. I believe that this is an important resistance level, and the bulls aren’t going to break through here straight away.
The Bank of England is meeting today. All 9 members of the Monetary Policy Committee are expected to vote in favour of keeping interest rates at their current levels.
Following the FOMC meeting, and despite Mario Draghi’s dovish comments, bearish speculators began closing short positions on the euro. Keep an eye on 1.1350. If nothing changes, the pair will reach this level before the weekend.