U.S. Dollar Sells Off After Less-Hawkish Fed Statement

We got what we were looking for: A volatile price breakout with a good profit. We were able to catch a 100-pips-gain in the EUR/USD amid a broad-based sell-off in the U.S. dollar. The greenback’s move was prompted by the Federal Reserve’s softer guidance, which was less hawkish, suggesting that the central bank’s rate hike cycle is close to its end. This bearish outcome led to the sell-off in the dollar and pushed other counterparts higher in turn.

EUR/USD: Focus is now on the 1.0930-50-resistance zone. A break above 1.0960 could lead to a test of the 1.1033-February-high. A current support is seen at around 1.0750.

GBP/USD: Next hurdle lies at 1.2350, followed by the crucial 1.2450-resistance. The 1.22-area could act as a support for now.

The Bank of England is due to decide on interest rate hikes today. Any less-hawkish monetary policy decision could see sterling trade lower.

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Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

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