The US dollar was maintaining its bullish momentum a day after the Fed meeting. This came as investors digested the FOMC meeting. The dollar gains came as the Fed was seen to be less dovish than expected, calling the current weakness in inflation transitory. Meanwhile, factory orders rose 1.9%. In the eurozone, the final manufacturing PMI rose only modestly to 47.9.
Can the EURUSD Extend Declines Lower?
The common currency ‘s rebound off the lows near 1.1140 saw price rallying. But, failure to build upon the momentum sent it lower just a day later. EURUSD is trading back within the range. The downside support at 1.1140 is likely to be tested in the near term. A rebound off this region could keep the currency pair supported, but further gains above 1.1226 are hard to come by.
