EUR/USD tumbles below 1.1750 as Fed rises rates and signals more hikes

• USD gains momentum: EUR/USD erases daily gains, eyes daily lows.
• Fed rises key rate to 1.75-2.00% range as expected, median forecast signal two more rate hikes for 2018.

The EUR/USD pair dropped from 1.1785 to 1.1742 after the release of the FOMC statement and the updated economic projections. The pair moved lower amid a rally of the greenback in the market. The US Dollar Index erased losses and rose back above 93.50.

EUR/USD was hovering around 1.1750, looking weak after events at the Fed. The euro erased daily gains in a few seconds and the pair was testing levels under 1.1750.

The Federal Reserve rose the Fed Funds rate by 25bp as expected. The updated projections of the FOMC staff showed the median forecast signaling two more rate hikes for the year. Those projections lifted the US dollar across the board. Now market participants await Jerome Powell’s press conference.

EUR/USD Technical levels

To the upside, resistance levels might be located at 1.1810 (Jun 12 high), 1.1840 (Jun 7 high) and 1.1870. On the flip side, support could be seen at 1.1755, 1.1725/30 (Jun 8 & 13 low) and 1.1705.