After weeks of anticipation, the question about the results of the FOMC meeting early this morning was finally answered.
The Federal Reserve (Fed) kept interest rates unchanged at 5.50% as expected before a follow-up statement by Fed Chairman Jerome Powell came into focus.
Overall, markets digested Powell's speech in a dovish tone with the Fed maintaining its projection for 3 interest rate cuts in 2024.
This has given a severe decline to the US dollar after the meeting lasted until the end of the trading session in New York.
It can be observed that a significant change in direction has occurred on the chart of the EUR/USD currency pair for several recent sessions.
From the beginning of the week, prices showed a pattern of horizontal decline following the US dollar which still displayed positive performance, but the situation changed after the FOMC meeting early this morning saw a significant jump in prices.
From the level around 1.08400, the price has surged up to the level of 1.0.9200 at the close of the New York session following the depreciation of the US dollar.
A bullish signal was observed after the price rose above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart and the increase is seen to continue until the Asian session this morning.
Expectations for the rise to continue further are towards the resistance zone at 1.10000 and record the latest high above the previous weeks level.
And if the bullish momentum remains strong, the price has the potential to reach up to 1.11000 next week.
However, investors remain alert for a price drop if there is a change in the market situation yesterday.
A drop in the price below the 1.09000 zone can push the price back to yesterday's level.
The support zone at 1.08000 will be the focus of further declines.
