EUR/USD tumbles below 1.1950 after FOMC decision as USD soars

EUR/USD dropped below 1.1980 after the release of the FOMC statement. The greenback gain momentum across the board as US bond yields hit fresh daily highs. 

The pair fell to below 1.1950, losing more than 50 pips after the announcement, falling below yesterday’s low. 

As expected, the Federal Reserve kept rates unchanged as expected. It announced that will begin to unwind its USD 4.5trillion balance sheet in October. The FOMC staff lowered inflation expectations, however, they still project on more hike in 2017. 

Technical levels 

To the upside, resistance levels might be located at 1.1950, 1.2020 (daily high) and 1.2060 (Sep 07 high). On the flip side, support could be seen at 1.1930 (20-day moving average), 1.1915 (Sep 18 low) and 1.1870.