After much anticipation by investors, the outcome of the FOMC meeting was finally answered earlier this morning by seeing the US dollar depreciate quite significantly against a basket of major currencies.
The Federal Reserve (Fed) maintained a loose policy with unchanged interest rates as well as a bond -buying program was also maintained as a measure to support the United States (US) economy.
Fed Chairman Jerome Powell touched on bond tapering when he said that policymakers were discussing the details, but would need several more meetings before he could give a clearer answer.
Following the results of the meeting, the price chart of the EUR/USD currency pair saw a jump to a 2 -week high with a daily rise of around 80 pips recorded.
The price initially made a touching decline to the level of 1.17800 before surging above the level of 1.18000 and closing the trade at the high level around 1.18500 at the end of the New York session.
This situation has also opened room for price increases to the resistance level of 1.19000 in the SBR zone (support become resistance) after the price fell below the zone for 4 weeks.
A higher rise beyond the zone will push the price expectation to the next target level at the key resistance of 1.20000.
On the other hand if this price surge situation fails to hold and the price makes a decline again, investors will assess whether the 1.18000 level is able to curb the lower price fall.
If the price continues to plummet, the support zone at 1.17000 will be the focus after the price also crossed last week's support level around 1.17500.
