FxWirePro: EURUSD trades slightly lower after Fed policy, good to buy on dips

EURUSD declined slightly initially lower as US Fed has kept its interest rates unchanged at 1.75% as expected. The central bank has kept its GDP unchanged at  2.2% in 2019, 2.0% in 2020 and said that it will monitor global developments and muted inflation. They have reduced their fed funds estimate for 2019 to 1.6% from 1.9%.   

The US 10- year bond yield has lost more than 1% after the release of the policy statement. The spread between US and German yield has slightly narrowed from 215 198 bps from 212 bps.

Technically near term significant resistance is about 1.1120, violation past will take the pair to next level till 1.1180. Major trend reversal only beyond that level.

On the flip side, secondary support is nearby 1.10350 and any significatory break beneath will drag the pair 1.1000. Extreme weakness only under 1.0980 level.

It is good to sell on rallies around 1.1100 with SL around 1.1060 for the TP of 1.1180.