After the FOMC meeting, the European Central Bank (ECB) became the focus of yesterday's New York session for monetary policy decisions following the Bank of England (BOE) meeting that took place earlier.
The ECB decided to increase interest rates by 50 basis points to 3.00% in line with forecasts and also confirmed another 50 basis points increase will be implemented at the March meeting.
The president of the ECB, Christine Lagarde stated that the decision will however be evaluated based on the data that will be published later.
However, investors were somewhat disappointed when the Euro currency failed to show strengthening after the positive meeting results.
While the US dollar was seen dominating until the end of the session to regain profits after experiencing a significant decline in the previous sessions.
Turmoil is not over with the focus being on the publication of the United States (US) NFP employment data report in the New York session tonight.
The price chart of the EUR/USD currency pair initially saw the price have surged past the 1.10000 post-FOMC high, but the price failed to hold above that level when it plunged again.
A daily decline of around 140 pips was exhibited until the price reached back to the previous concentration zone of 1.09000.
It was slow around that until trading resumed in the Asian session this morning (Friday), the signal of a change in the bearish trend made investors cautious as the price had started to fall below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart. the said.
A lower decline if continued is seen to lead to the price support zone at the beginning of the week which is at 1.08000.
A lower breakout could push the price down to around 1.07000.
However, if the price manages to bounce back to make an increase, the 1.10000 resistance zone will still be the focus to be tested.
A successful continuation of the move higher will target the 1.12000 height for an 11-month record price high.
