The Fed keeps an accommodating tone

The Fed left its key interest rate unchanged last night at its monetary policy meeting. Fed members now anticipate GDP growth of 4.2% in 2021 compared with the 4% announced in September. Regarding employment, they estimate that the unemployment rate will reach 6.7% in 2020 (against 7.6% previously estimated), before falling to 5% next year.

EUR/USD remains in a strong up trend and is supported by the rising 20/50MAs. The RSI shows upside momentum and is not highly overbought. Readers may want to consider the potential for opening Long positions above the horizontal support at 1.219 with Fibonacci projection targets at 1.227 and 1.23. Alternatively, a break below 1.2190 would call for a down move towards 1.2165 and 1.2145.

Source: TradingView, GAIN Capital

Related tags: EUR Forex USD

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