• EUR/USD is oscillating near 1.0900 as USD Index has extended its downside after Fed signals rate pause.
• Federal Reserve sees tightening credit conditions from US banks after banking fiasco.
• European Central Bank would continue to hike rates further as global financial stability to propel inflation further.
• EUR/USD has comfortably established above the 61.8% Fibo retracement, which cements more upside ahead.

EUR/USD is hovering near the round-level resistance of 1.0900 in the Asian session. The major currency pair is looking to surpass the same as the Federal Reserve (Fed) has delivered signs of pausing the policy-tightening process ahead.

The commentary from Federal Reserve chair Jerome Powell, “some additional policy firming may be appropriate” was sufficient to infuse confidence into the risk-perceived currencies. This indicates that Federal Reserve Powell is considering that the current monetary policy has come a long way and will be restrictive enough to ease the United States Consumer Price Index (CPI) to 2%.

The US Dollar Index (DXY) has refreshed its six-week low at 102.61 as investors see no further room for more rate hikes from the Federal Reserve. The USD Index is expected to continue its downside momentum further as fears of the US banking crisis have refreshed.