The results of the FOMC meeting early this morning have shown the effect of further depreciation for the US dollar currency in line with the expected reaction.
In line with previous market expectations, the Federal Reserve (Fed) raised the interest rate by 25 basis points to 5.00% with a follow-up statement observed in a dovish tone.
Fed Chairman Jerome Powell has signaled that there will only be one more rate hike until the end of 2023, indicating that the policy tightening phase is coming to an end.
However, he stated that the central bank will not cut interest rates.
Therefore, the US dollar is expected to move weakly for a longer period, but the situation can change if the market reacts to the development of the global banking crisis.
The Euro continues to take advantage of the space to shine brilliantly in addition to the different approach by the European Central Bank (ECB) compared to the Fed, with the expectation of continued policy tightening in the fight against inflation.
The price chart of the EUR/USD currency pair showed a higher jump when the reaction to the FOMC meeting results.
The price initially flattened slowly at the 1.08000 level then jumped 100 pips testing the 1.09000 level before retreating again.
Closing the end of the session around 1.085500, the price continued the slow opening of the Asian session market this morning (Thursday).
With the increasing pattern displayed for 5 days in a row, the price is seen to continue to increase and will then break through the level of 1.09000 that has been reached.
The continued rise will target the 1.1000 level to record a recent 7-week high.
On the other hand, if the price changes direction at the end of the week, the price will drop back towards the 1.08000 level in the surge area that started during the FOMC.
A lower drop would signal a trend change again towards the previous focus levels such as 1.07000 and 1.06000.
