EUR/USD recap for 26.07.2017 and FOMC July outcome
Yesterday was the FED FOCM for July and even though it was expected not to cause any sharp movements and volatility it led to some serious movements for the USD across the markets. The expectations were not justified as the FOMC revealed that Inflations still is a bugger in the FED plans, rate hikes are the course to follow, but there was no clue for the balance sheet policy for the near future, as it was mentioned with the time relevance to as "relatively soon". Thus the FED came out more dovish on the policy rate and more hawkish on the balance sheet, with no shedding of light for where, when and how much the balance sheet will be changed.
Price opened at 1.16418, went a bit low at 1.16122 and in the aftermath of the FOMC EUR/USD climbed towards high as 1.17937, passing 1.17214 and it actually closed above it at 1.17327. The recent sharp rise in the euro may be limited afterwards as a strong euro currency isn't favored. Reaching the top side of the range, the pair may go in-to a correction mode back to around 1.13. Still buying the dips is a recommended move for the pair, but dollar weakness may be temporary. Everything depends on the market sentiment and its "opinion" and calculation of the future FED policy and monetary moves. For now 1.17214 will play as an mediate support limiting movements down.
If sentiment and fundamentals remain the same, dollar will continue to weaken further, giving the profitable opportunity to trade against it.