EUR/USD narrowing in a 60-pip range
On the one hand, the Fed didn't hike rates and sounded reluctant to raise them any time in the near future. On the other, the ECB is buying 80 billion euros per month in bonds and has negative interest rates.
Many of the weak-handed EUR/USD shorts have been squeezed out now and the position wasn't all that crowded anyway. At the moment, a bit of a wedge is forming in the 1.1280 to 1.1340 range and the break of it will dictate the next short-term move.
In the bigger picture, the market is consolidating ahead of the February high of 1.1376 and the Feb high close of 1.1323. The latter will be one level to watch as trading winds down today.
I get the sense the equity market still hasn't quite embraced the Fed rhetoric yet. If/when it does, look for some better inflows into USD.
