The Euro spent most of Wednesday in a positive note, thus approaching the combined resistance of the 55– and 100-hour SMAs at 1.23.
Strong upside risks started to prevail in the market late in the evening when the FOMC announced a 0.25% increase in its benchmark rate. Volatility was introduced in both directions; however, Euro bulls eventually took the dominant hand in response to a decrease in rate hike projections. The pair shot up 48 pips in one hour and subsequently reached a one-week high of 1.2370.
It is expected that the given upward momentum allays in this session, thus allowing for a minor decline. This likely fall should not exceed 1.23, as this level is supported by the 55– and 100-hour SMAs. In the meantime, gains should be capped near 1.2450.
