The Federal Reserve’s updated dot plot triggered a dollar rebound, pushing EURUSD and GBPUSD below key moving averages.
The USD strengthened following the Federal Reserve’s more hawkish dot plot, which suggested a tighter monetary policy outlook. Chair Jerome Powell’s removal of forward guidance did not offset the shift in rate expectations among Fed members, fueling dollar bullishness.
EURUSD fell below its 100-hour and 200-hour moving averages, with the 200-hour MA at 1.15657 now acting as resistance. The pair dropped to 1.1536 but failed to break lower support near 1.14989-1.1506, prompting a modest rebound to 1.1556. GBPUSD also declined, breaching its 200-hour MA at 1.33902 and a key swing zone between 1.3365-1.33739.
Technical bias turned bearish for both pairs, with sellers maintaining control unless buyers reclaim critical moving average levels. The Fed’s projections remain fluid, but the immediate reaction favored the dollar.