EUR/USD breaks above 1.1400 to 2-week highs after Fed’s meeting

• US Dollar tumbles across the board after FOMC statement.
• Fed leaves rates unchanged as expected, signals no rate hike over the rest of the year.
• Powell’s press conference to start at 18:30 GMT. 

The US dollar dropped across the board following the release of the FOMC statement. Equity price rose and US yields decline. 

The EUR/USD pair was hovering around 1.1350 before the release of the FOMC statement and then jumped to 1.1414, reaching the highest level since March 1. The pair was holding near the top with a strong bullish momentum. 

The Federal Reserve kept rates unchanged as expected at 2.25-2.50%. The projections from the FOMC staff show no hikes in 2019 and one hike in 2020 and a downgrade to growth forecasts. The central bank announced a taper in the balance sheet rolloff. The reduction program will end in September. 

EUR/USD Levels to watch 

To the upside, resistance levels might be seen at 1.1420, 1.1450 and 1.1480/85. On the flip side, support could now be located at 1.1345 (US session low), 1.1320 (20-day moving average) and 1.1305