EUR/USD price struggles to move higher on dovish Fed

EUR/USD price has struggled to close higher yesterday despite a very dovish message that the Federal Reserve delivered after last night’s meeting. Fed’s Powell said that the central bank may accommodate annual inflation above 2% for some time before raising interest rates.

“Any shift in the policy stance (to a hawkish, less accommodative side) is not imminent, US front end rates are to remain anchored, the US curve is set to steepen further and real rates are to remain deeply negative,” ING FX strategists wrote in a note.

EUR/USD price is now trading just above the $1.21 mark for the second consecutive day. On the upside, the buyers are likely to target the old resistance line at $1.2175. On the downside, a broken ascending trend line that comes around $1.2065 is likely to act as support again.

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