Resistance - 1.1296, 1.1342, 1.1376
Support - 1.1236, 1.1196, 1.1144
Pair spiked to a high of 1.1298 after the Fed revised long-term interest rate projections lower along with 2016 and 2017 GDP forecasts.
However, the spot is now struggling to cut through 1.1296 (23.6% of May 2014 high - Mar 2015 low). This may be because Fed still sees two rates hikes happening this year although six of the members expect only one rate hike.
Overall, USD is being sold across the board. However, gold is still below $1300 and that could be a sign the markets are still worried about the possibility of two rates hikes this year.
Hence, it would take a day end closing above 1.1296 to convince bulls that a short-term bottom is in place 1.1188. On the other hand, failure to close above 1.1296 would open doors for a fall back to 1.1236 (38.2% of 1.0463-1.1714) tomorrow.
Note that German yields stand to loose further on docish Fed.
Support - 1.1236, 1.1196, 1.1144
Pair spiked to a high of 1.1298 after the Fed revised long-term interest rate projections lower along with 2016 and 2017 GDP forecasts.
However, the spot is now struggling to cut through 1.1296 (23.6% of May 2014 high - Mar 2015 low). This may be because Fed still sees two rates hikes happening this year although six of the members expect only one rate hike.
Overall, USD is being sold across the board. However, gold is still below $1300 and that could be a sign the markets are still worried about the possibility of two rates hikes this year.
Hence, it would take a day end closing above 1.1296 to convince bulls that a short-term bottom is in place 1.1188. On the other hand, failure to close above 1.1296 would open doors for a fall back to 1.1236 (38.2% of 1.0463-1.1714) tomorrow.
Note that German yields stand to loose further on docish Fed.
