Good morning,
Market seems to have digested the FOMC outcome by now..
Following the announcement EURUSD went up 150 pips roughly down to 1.4000 before closing around 1.4125.
This morning everybody is selling USD, we just reached 1.4245 as I write.
The announcement was quite in line with expectations, but the duration was 8 months instead of 6 expected.
So what now? While I dont think it is really wise to counter the trend, US rates are trading lower and as a result so is the USD.
It seems that 1.4000 is going to be the monster pivot everybody will look at to signal a change in trend and while it s holding I guess buying dips might continue to be the topic. The market will certainly target 1.4370-80 in the first attempt. Very short term I think we are a bit overdone and I think we might retrace to 1.4160 before targetting higher.
Don't forget we have BOE and ECB meetings today and Unemployment in the US tomorrow, so it will remain volatile.
Good luck,
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