On Wednesday, EURUSD maintained a narrow range of fluctuations before the Fed announced the interest rate decision. After the data came out, the market plummeted and broke through the key point of 1.2000. The data showed that the Fed kept interest rates and loose monetary policy, but there was a clear hawkish expectation on economic forecast. Policymakers predict that US GDP will grow by 7.0% in 2021, higher than the previous 6.5%. In terms of inflation, personal consumption expenditure is expected to be 3.4% this year and 2.1% next year. From a technical point of view, Euro face a very strong impact from the news and the daily candle broke through 2 key support levels of 1.2050 and 1.2000. H4 graph shows that bears dominate the market and all indicators show bearish signs. Overall prioritise Sell position. The deciding point whether to buy or sell is near 1.2000.
Resistance: 1.2145-1.2170-1.2200
Support: 1.2100-1.2050-1.2000
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