EUR/USD unable to regain 1.1300 despite dovish Fed

EUR/USD revisited the 1.1300 area as following Fed decision to stay on hold at its June meeting, but despite dollar weakness, the shared currency was unable to regain the psychological level.

EUR/USD has been unable to recover the psychological mark, which is being reinforced by the 50-day SMA as resistance area despite several attempts over the last days. At time of writing, the pair is trading at 1.1260, still up 0.48% on the day.

Fed statement

The Fed decided to keep the target for the fed funds unchanged at 0.25-0.50% in June. The FOMC noted that labor market has slowed despite economic pickup and reiterated the economy will warrant only gradual increases in the federal funds rate.

In the subsequent speech by Chair Yellen,  said that “every meeting is live,” and no meeting is off the table. It is not Impossible that by July meeting data is more positive. However, analysts seem leaned to September or December for the next hike.

EUR/USD levels to watch

As for technical levels, EUR/USD immediate resistances are seen at 1.1304 (50-day SMA), 1.1320 (Jun 10 high), 1.1415 (Jun 9 high) and 1.1445 (May 11 high). On the other hand, supports  could be found at 1.1188 (Jun 14 low), 1.1135 (Jun 3 low) and then 1.1102/00 (200-day SMA/psychological level).