EUR/USD Outlook for 17 June

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EUR/USD has extended its falls below 1.1950, trading at the lowest since mid-April. The dollar has resumed its gains driven by the hawkish Fed meeting on Wednesday, where the central bank signaled tapering bond buying and brought forward the first rate hike. Jobless claims missed estimates of 412K.

On June 16, the US Federal Reserve published the Federal Open Market Committee's Statement, Economic Outlook and Federal Funds Rate. During the forty minutes following the announcement, the EUR/USD currency exchange rate dropped 100 base points.

On Thursday, the decline of EUR/USD stopped at the support of the weekly S3 simple pivot point at 1.1937.

In the case of the pair extending the decline, EUR/USD could look for support at the round levels like the 1.1900 and the 1.1850.

On the other hand, a potential recovery would face resistance near 1.2000. Afterwards, the weekly S2 simple pivot point could provide resistance at 1.2015.

The material has been provided by InstaForex Company - www.instaforex.com

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