EUR/USD: Central banks on hold, but bias is hawkishEuro/US DollarFX:EURUSDXBTFXThe FOMC meeting was in the focus of market attention during the previous week. The FED left rates unchanged, as it was widely expected, however, the tone of the speech of Fed Chair Powell did not bring any relaxation among investors. Namely, Powell acknowledged that the Fed is closely following developments with the price of oil, and its potential impact on inflation. Asked if the Fed will be ready to increase interest rates “We're prepared to do what needs to be done” but refused to directly answer the question. As for other macro indicators posted for the US economy during the week, the Pending Home Sales in February increased by 1,8% for the month while dropping by -0,8% on a yearly basis. The final Inflation figures for the Euro Zone in February are 0,6% for the month and 1,9% y/y. The Producers Price Index in February was higher by 0,7% m/m and 3,4% y/y. Figures were above market estimates of 0,3% m/m and 2,9% y/y. The European Central Bank also held a meeting a day after the FOMC. As expected, the ECB also left rates unchanged. However, what has changed is the tone of the ECB President Lagarde which switched to a hawkish rhetoric in case that increased oil prices transmit into increased inflation in the Euro Zone. As for other macro data posted during the week, the ZEW Economic Sentiment Index for March in Germany was down by -0,5 significantly below forecasted 36. The Producers Price Index in Germany in February dropped by -3,3% m/m and -0,5% y/y, which was higher from market estimates. The starting weekly position for EUR/USD was at 1,1410 while the rest of the week was on a bullish side. Both FOM and ECB meetings left the market on the value of the currency pair, so the highest weekly level was reached on Thursday, at 1,1616. The RSI moved from the oversold market side toward the level of 44, but the level of 50 has not been crossed in order to mark a clear shift toward the overbought side. Moving averages of 50 and 200 days are converging toward each other, but the potential cross is still not in store. The currency pair closed the week at 1,1571, after clearly testing the 1,16 resistance level. Based on current charts, the sentiment is more bullish than bearish. The next level currently emerged on charts in 1,1670. This level could easily be tested in the week ahead. On this road, some short reversals are quite possible, somewhere in between 1,1510 and 1,1530. Considering that there is no currently significant news expected to be released in the week ahead, there are no expectations that the currency pair could make higher moves. Important news to watch during the week ahead are: EUR: HCOB Manufacturing PMI Flash for March in Germany and the Euro Zone, Ifo Business Climate in March in Germany, GfK Consumer Confidence in April USD: S&P Global Composite PMI flash for March, University of Michigan consumer Sentiment final for March.