Will FOMC Meeting Cause EUR/USD to Plunge Again? - Kakiforex.com - Financial Market Media No. 1 in the World Will FOMC Meeting Cause EUR/USD to Plunge Again? Will FOMC Meeting Cause EUR/USD to Plunge Again?
InstaForex

June 16, 2021

Will FOMC Meeting Cause EUR/USD to Plunge Again?

 The movement of the US dollar in the market was seen somewhat mixed in Tuesday's trading yesterday with investors vigilant awaiting the outcome of the FOMC meeting early Thursday morning.


Ahead of the FOMC meeting, U.S. retail sales data came into focus in yesterday’s New York session saw disappointing data readings versus expectations for an increase.


However, the producer price index and US industrial production data recorded higher -than -expected readings.




If we look at the price movement on the main chart of the EUR/USD currency pair, the price made a rise at the beginning of the Asian session, but the US dollar began to strengthen in the European session and pressed the price down again.


Even so, the decline in prices was difficult to continue and the US dollar moved back weakly again until the end of the New York session.


The price hovering at the support level of Moving Average 50 (MA50) in the 1 hour time frame of the price movement on the EUR/USD chart has not yet given a clear signal for the direction of further movement.



The Euro currency is expected to continue to move gloomily this week and price movements will be more driven by the US dollar.


The 1.20900 level is still seen as a price support level if the price makes a decline. The price that continues to decline past the support zone 1.20900-1.20600 is expected to head to the level of 1.20000.


On the other hand if the price makes a rise, the resistance zone 1.21500-1.21800 is seen to be an important zone that the price will test.


Prices that manage to pass the zone will continue to rise to the previous target level at the resistance zone of 1.22500.


Investors are vigilant awaiting the outcome of the FOMC meeting in the early hours of Thursday morning with the expectation that aggressive price movements will be witnessed.