EUR/USD bears move in and pounce on a hawkish Fed hold

• EUR/USD sinks on the hawkish hold from the Fed.
• Bears eye the trendline support although bulls still in the market and eye the 1.0900s longer term. 

EUR/USD is volatile following the Federal Reserve's interest rate decision and projections. The pair jolted to the downside on the knee-jerk as the market prices in more rate hikes ahead even as the Fed holds for now.

The markets are now digesting the forecasts, projections and statements while waiting to hear from the Federal Reserve's chairman, Jerome Powell, who will take questions from the press at the top of the hour.

Federal Open Market Commission statement 

key takeaways & Fed projections:

US interest rate decision actual 5.25% (forecast 5.25%, previous 5.25%).
The banking system is sound and resilient.
Fed officials see Fed funds rate at a median of 5.6% at end of 2023.
Fed policymakers see higher GDP growth in 2023, a lower unemployment rate and less progress on core inflation than they saw in March.
Holding rates steady allows for assessment of policy impact.
The extent of additional firming to hinge on the economy.
FOMC vote was unanimous.
Voted 11-0 for Fed funds rate action.
Fed will continue same pace of reducing treasury and MBS holdings.
Economic activity expanded at modest pace.
Job gains robust and unemployment remains low.
Fed median rate forecasts rise to 5.6% end-* 23, 4.6% end-* 24.
Fed officials see US GDP at 1.0% in 2023 and 1.1% in 2024.
Fed signals additional rate increases possible later this year.

All in all, this was a hawkish hold and consequently, Fed swaps no longer consider a 2023 rate cut likely.

Traders now await Fed's Powell:

Watch Federal Reserve's chairman Jerome Powell live

EUR/USD technical analysis

The market is volatile around the Fed, but once the dust settles, the bulls will still be in control if they manage to stay on the front side of the bullish trend:

(Hourly chart)

The neckline of the M-formation on the weekly charts remains compelling: