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Dollar falls back as Fed offers nothing new- EUR/USD reclaims 1.06

The dollar tried to make headway yesterday after the US Federal Reserve delivered nothing new in terms of monetary policy or the prospects the current level of interest rates being changed in the near term. In that sense many in the markets have concluded, that the Fed is now done and that has undermined the US currency since yesterday evening. That said, the dollar did gain at one stage when Jerome Powell was debriefing the press. The EUR/USD fell to 1.0517, but it very soon rebounded on his next comment. That rebound extended and lasted into the close, where the EUR/USD ended the session at 1.0570. It has risen further so far this morning, setting a high so far at 1.0602. The first support right now is at 1.0577 (21 day moving average) and the next resistance is at 1.0639 (50 day moving average). The US dollar looks like it is the victim of a good degree of disappointment right now this morning as US yields remain under pressure. The one supporting factor remains the current geopolitical concerns, but it remains to be seen if that will be enough in the short term. The EUR/USD is just now trading at 1.0599

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