The results of the FOMC meeting were in line with market forecasts as the Federal Reserve (Fed) met expectations of raising interest rates more aggressively by up to 75 basis points.
However, falling short of expectations for a better performance, the US dollar instead moved weaker again until the end of the New York session.
Analysts assess profit -taking activities by investors who have entered trading positions earlier (price in) ahead of the anticipation of the FOMC meeting.
The situation of the depreciation of the US dollar also occurred at the previous FOMC meeting, and therefore, the US dollar is expected to strengthen again.
Also stealing the spotlight at yesterday’s European session, a surprise meeting held by the European Central Bank (ECB) impacted negative movements on the Euro.
Concerns over the debt crisis against European countries prompted the ECB to offer a new aid scheme plan.
On the price chart of the EUR/USD pair, the price is seen to have made a rise to test the resistance of 1.05000 before showing a decline again below the support zone of 1.04000.
However, after the FOMC meeting, prices rebounded following the depreciation of the US dollar until the price hovered around 1.04600 at the end of the New York session.
A re -rise above the Moving Average 50 (MA50) support level on the 1 -hour time frame could be an early signal for a bullish trend change.
But investors are also wary if the US dollar can re -strengthen in weekend trading.
If the rally continues past the resistance at 1.05000, the next target of the price is heading at 1.06000 if the US dollar remains weak.
On the other hand, if the US dollar manages to ‘comeback’ again, the price decline will fall below the 1.04000 zone and could reach around 1.03000, thus recording a 20 -year low.
