EUR/USD Up Despite Rate Raise

The FED raised the interest rate from 1.25% to 1.50% yesterday during the press conference. Oddly, however, the market reaction was to sell the US dollar, which could be counter as a classic buy the rumor sell the news scenario.

EUR/USD went up quite sharply after the announcement as the initial reaction was a move from 1.1760 to a high of 1.1845. The pair is still trading to the upside, although somehow lower with current market price at 1.1825.

Main trend on the short term remains neutral with sideways trading between 1.19 and 1.17. Major medium term resistance is seen at the 1.1950 level and medium term support is seen at the 1.15 level.

Today we have the ECB interest rate decision expected to remain unchanged and later we are to hear Mario Draghi speak on current economic conditions and future outlook for the EU.

Chart: EUR/USD H4