The US dollar showed positive movement immediately after the latest FOMC meeting ended early this morning for the May 2025 edition.
As expected by the market, the Federal Reserve (Fed) kept interest rates unchanged at 4.50%.
Fed Chairman Jerome Powell commented further on the labor market situation and inflation that are still good, but there is some anxiety about the United States (US) economic growth in the first quarter that was affected by the tariff war.
The market is cautiously following the development of US-China trade negotiations that will take place in Switzerland this weekend.
Examining the price movement on the EUR/USD currency pair chart, the price has been moving in the 100 pips sideways zone for several days.
From around 1.13500, the price was pressured to fall back to the 1.13000 zone following the strengthening of the US dollar after the FOMC meeting.
However, once tracking the support zone, the price slowly rebounded at the opening of the Asian session this morning (Thursday).
Prices are expected to test the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the EUR/USD chart to assess the direction of further movement.
If the price remains below the line, the tendency is for the price to continue the bearish movement but needs to pass the 1.13000 support zone.
If it drops lower, the price target will shift to the focus zone around 1.12000.
On the other hand, if the price increase successfully continues to pass the MA50 barrier, the price target is to head towards the 1.14000 resistance zone.
The zone has been a barrier to the price continuing to rise higher since last week.
