Financial markets were shaken by the results of the FOMC meeting early Thursday morning by the Federal Reserve (Fed) with a statement delivered by Fed Chairman Jerome Powell being a key indicator to investors.
In conclusion, the Fed still maintained a loose policy and interest rates also remained unchanged.
With the projection of interest rates not going to be raised making investors let go of their holdings of the US dollar even as Powell gave confidence in the prospects of an economic recovery until 2023.
The US dollar significantly depreciated following the results of a meeting and speech by Powell although at the beginning of the New York session the US dollar was seen moving slightly higher supported by rising US treasury yields to the latest highs for over 1 year.
The other major currencies rebounded with the advantage of the US dollar depreciating situation as can be seen on the charts of the major currency pairs.
On the chart of the EUR/USD pair, the price has been moving flat since yesterday's Asian session at the level of 1.19000 which is the price support zone.
However, after the results of the FOMC meeting the price jumped around 80 pips heading back to the resistance level of 1.2000 in the SBR zone (support become resistance) before the price movement slowed down again until trading resumed the Asian session this morning.
A slight decline was exhibited at the beginning of the Asian session but the price is expected to rise again from the 1.19600 zone to continue the bullish momentum in the previous session.
The SBR 1.20000 zone will be penetrated by the price before the continued price increase will lead to the 1.20600-1.20900 focus zone.
If the price plummets again, the 1.19000 level is still seen as a support level for the price and if the price falls lower, the lower support level is at the 1.18000 zone which investors need to focus on.
