The US Federal Reserve, as expected, kept interest rates unchanged at 2.25-2.50% Wednesday. The trajectory of rate hikes was also narrowed, with the central bank stating it will not hike interest rates this year amid a slowing economy.
Underpinned by a softer greenback, the EUR/USD extended gains for a third consecutive day Tuesday, up 0.13%. The buck is seemingly weaker on fears of a dovish Fed, with the central bank widely expected to keep policy unchanged today.
EUR/USD bulls went on the offensive Monday, extending Friday’s rally. Up 0.10%, the pair is closing in on a daily channel resistance etched from the high 1.1569.
Following three stormy days, Thursday and Friday were somewhat calmer in comparison. Leaving 1.32 unchallenged Friday, the day concluded testing the underside of 1.33 after conquering March’s opening level at 1.3264.
On more of a broader outlook, weekly price continues to reflect a bullish stance out of demand coming in at 1.1119-1.1295, eclipsing a large portion of the prior week’s losses.
