As expected, the US dollar strengthened following the market reaction to the FOMC meeting earlier this morning with a hawkish -tone decision by the Federal Reserve (Fed).
The Fed agreed to keep interest rates unchanged at this meeting, but noted that the central bank will raise interest rates in the near future.
As a result, most other major currencies in the market came back under pressure by the resurgent strengthening of the US dollar.
On the main price chart of the EUR/USD pair, the more obvious bearish pattern continued after the FOMC meeting to the expectation zone of around 1.12400.
Resuming trading at the beginning of the Asian session this morning (Thursday), the price is still showing a decline even at a slower pace.
The lower decline is expected to test the key support zone in 2021 which is at 1.12000.
Will the continued decline in prices be able to penetrate the zone and record the latest lows?
The price movement is expected to continue moving on a bearish trend until the possible price increase manages to pass the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart.
A higher rise is then expected to retest the 1.14000 resistance in the SBR (support become resistance) zone.
Investors will next focus on the release of US economic growth data in tonight's New York session which will also be the focus of the central bank.
