EUR/USD rallies on Fed hike, longer-run dot plot unchanged

Currently, EUR/USD is trading at 1.0695, up 0.83% on the day, having posted a daily high at 1.0697 and low at 1.0603.

EUR/USD has rallied after an initial spike down on the Fed hike of 25bps. The dollar is soft due to the dot plot as unchanged as Fed future price in only one more rate hike for 2017 and longer run on the dot plot was unchanged at 3%. However, there are now 14 Fed officials that see 4 rate hike sin 2017, up from 11 previous. Cash Cark 

Elsewhere, the focus will turn to the Dutch elections. "Today's Dutch election is the first test of this last point. Recent polls suggest the populist-nationalist PVV has waned in recent weeks, explained analysts at Brown Brothers Harriman, adding, "The Dutch themselves and, by and large, the investment community has never been particularly worried about the outcome.  It is recognized that Wilders does express a current among the Dutch electorate, but it is not growing.  The fragmented and decentralized nature of Dutch politics puts a premium on coalition building which serves to temper extreme views."

EUR/USD levels

Analysts at Scotiabank explained that a move to the downside has support at 1.0595 (50% retracement of the squeeze up from the low 1.05s to the 1.0712 high. To the upside, the analysts see firm resistance at 1.0700/10 now and major resistance at 1.0820/40. Major support is 1.0495/1.0525.

Focus to turn to US debt crisis?