Euro bullish momentum extended after the FED repeated the “extremely low for an extended period” stance, with the addition that Bernanke clarified that this means at least for 2 more months.
Inflation seems not to be a problem while unemployment remains a challenging issue according to the FED, another factor that weighted against dollar.
The fact that "the Fed will continue to re-invest maturing mortgage-backed and Treasury securities" was, according to Asharf Laidi, Founder at AshrafLaidi.com "what hurt the U.S. dollar most on the day and led to a stock-market rally".
Technically, "Bigger time frames are strongly bullish which suggest the downside will remain limited. Having bounced higher from the broken roof of the channel, 1.4700 is now key support on retracements, while 20 SMA at the same area, will reinforce the strength of the level" said Valeria Bednarik, Chief Analyst at FXstreet.com.
At the momen of writing, the EUR/USD is extending gains to hit a new 16-month high at 1.4815/20 area. Looks like buying interest is far from drying up.
Support levels: 1.4760 1.4735 1.4690, Resistance levels: 1.4780 1.4810 1.4850
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