EUR/USD unmoved as Fed maintains sunny outlook

The US dollar is going nowhere following the Fed rate decision, leaving the EUR/USD largely unchanged around 1.0915 levels. 

Inflation close to Fed’s goal

The policy statement says inflation measured on 12 months basis has been running close to Fed’s goal. The policy makers also see slowdown in the first quarter as transitory and took note of the continued labor maket strength. 

However, the bank refrained from explicitly pointing to June rate hike. Furthermore, the statement offers no clues regarding the Fed’s plans to trim its balance sheet size. Thus, there is little in the offing for the USD bulls. 

EUR/USD Technical Levels
The first resistance is seen at 1.0991 (weekly 100-MA) ahead of 1.1039 (Oct 20 high) and 1.11 (psychological resistance). On the downside, a break below 1.0852 (4-hour chart support) could yield a pullback to 1.0838 (200-DMA). A daily close below the same would revive the bearish view and open doors for 1.0735 (Apr 19 high).