The FOMC made the announcement yesterday that they would be buying $300bn in US Treasuries and $750bn mortgage backed securities. They maintained the Interest Rate at 0-0.25% whilst CPI (Feb) gained 0.4% as expected.
The USD was beaten after the FOMC announcement dropping over 2%. So what does this mean for the Dollar? This is all bad news because the US is trying to devalue the Dollar by printing more money.
We could see the Euro keep rising, however it depends on the ECB if they follow the Fed and take similiar action the Euro could be devalued and we could see more USD gains.
Keep a close look at the .618 Fibonacci retracement level on the Daily chart which is 1.3885 and after that the key resistance level of 1.4000. In addition to those levels watch the news because in this enviorment the news has been moving the currencies right through the support and resistance levels.
Difficult Time for the USD
DailyForex.com