Dollar Fell After FOMC Meeting
The dollar fell against most of the major currencies on Tuesday after Federal Reserve kept its interest rate unchanged at record low levels between 0% and 0.25% and retained its pledge to keep rates exceptionally low for an extended period of time. The decision was taken with just one dissenting vote by the president of the Kansas City branch, which was considered an unconditional position of the bank. Separately, the dollar was hurt by the downside comments from Fed about the condition of the labor and housing markets. The euro ended higher against the dollar at 1.3777, reaching intraday high at 1.3783. The single currency received support from the news that financial ministers from the euro zone managed to work out a strategy for emergency loans to Greece. In addition, Standard & Poor’s affirmed the credit rating of the country. The euro also rose against the yen to 124.38, while the dollar fell against the Japanese currency to 90.29. The sterling also rose against the greenback reaching 1.5248. Early this morning the two days meeting of Bank of Japan finished and the bank kept its interest rate unchanged at 0.10% as expected.
TECHNICAL OVERVIEW
EUR/USD
Тhe short term picture remains unchanged as the euro continues to consolidate around the key level at 1.3730, which is 50.0% Fibo retracement of the 1.2329-1.5139 rise. So far the upward movement is limited by the resistance at 1.3770, and if broken successfully next targets will be the resistances at 1.4060, which is 38.2% Fibo retracement of the mentioned rise, and 1.4190. On the downside, support is seen at 1.3640, followed by 1.3580 and 1.3400, which is 61.8% Fibo retracement.
EUR/USD (chart, table)
USD/JPY
The short term picture remains neutral as the pair continues to consolidate in a narrow range below the resistance at 90.90, which is 23.6% Fibo retracement of the 110.64-84.81 drop. If broken successfully next targets will be the resistances at 91.80, which coincides with the 200-days SMA, and 92.30. On the downside, support is seen at 90.10, followed by 89.10 and 88.50.
USD/JPY (chart, table)
GBP/USD
The short term picture remains unchanged as the sterling continues to consolidate in a narrow range. So far the rise is limited by the resistance at 1.5240, and if broken successfully next targets will be the resistances at 1.5470, which is 38.2% Fibo retracement of the 1.8666-1.3502 drop, and 1.5790. On the downside support is seen at 1.4860, followed by 1.4780 and 1.4580.
GBP/USD (chart, table)
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17.03.2010 FX daily review.pdf, 459 Kb
