EUR/USD  hovering near 1.2400 after Fed’s statement

• EUR/USD sideways after statement. 
• Fed kept interest rate unchanged as expected. 
• USD without clear direction. 

The EUR/USD pair was hovering around 1.2410/20 before the release of the FOMC statement. Then it rose to 1.2440 but quickly dropped to 1.2395. As of writing it was trading at the same level of the last two hours. 

Market impact of the statement has been limited so far. The Federal Reserve, as expected, kept interest rate unchanged and introduced minor changes to the statement. It mentioned the economy warrant further gradual increases in rates. Market expectation about a March rate hike remained elevated after the statement. 

The US dollar was moving sideways, without a clear direction. In the line, EUR/USD continues to move at previous levels, testing the 1.2400 region, practically at the same level it closed on Tuesday, far from the highs it reached at the beginning of the American session at 1.2474. 

Technical levels

To the upside, resistance levels might be located at 1.2455 (Jan 30 high), 1.2475 (Jan 31 high) and 1.2500 (psychological).  On the flip side, support could be seen at 1.2395 (Jan 31 low), 1.2360 (Jan 25 low) and 1.2330/35 (Jan 29 & 30 low).