EUR/USD rises modestly as Fed keeps rates unchanged

The US dollar weakened in the market following the decision of the Federal Reserve to leave interest rates unchanged at the current 0.50-0.70% range, as expected. The statement pushed the US dollar to the downside and EUR/USD moved away from daily lows back above 1.0760. The pair rose from 1.0730 toward 1.0770. 

The statement showed no major surprises. The vote to keep rates unchanged was unanimous. The FOMC said that market-based measures of “inflation compensation remain low" and it mentioned that consumer and business sentiment have improved. 

EUR/USD levels to watch 

To the upside, resistance levels might be located at 1.0775 (Jan 23 & 24 high), 1.0810 (Jan 31 high) and 1.0845/50 (Oct 25 low). While to the downside, support could be seen at 1.0730 (daily low), 1.0680/85 (Jan 31 low) and 1.0655 (Jan 26 & 27 low).