The results of the FOMC meeting early this morning became the main focus, but the price movement reaction shown was not as expected.
The Federal Reserve (Fed) met the forecast to raise interest rates to 5.50%, but did not encourage the strengthening of the US dollar as the market had already anticipated the situation.
The follow-up speech by Chairman Jerome Powell was given more focus when he expressed the view that raising interest rates is still an option to implement, but it is necessary to first evaluate the latest data readings, especially in the employment sector and the inflation rate.
The US dollar showed a mixed reaction when the interest rate decision was announced, but after Powell's speech, the currency king ended the New York session lower.
The Euro currency is now seen to have momentum to increase its value after the decline of the US dollar, with today's market focus being on the European Central Bank (ECB) policy meeting.
It is likely that there will be a positive reaction to the Euro with the expectation that an interest rate hike will be implemented, but the ECB President's speech will be an indication of further monetary policy.
On the chart of the EUR/USD currency pair, the price did not show a significant movement but showed an increase to the level of 1.11000 after the FOMC meeting.
The price above the 1-hour Moving Average 50 (MA50) support level on the EUR/USD chart suggests bullish price movement ahead of the ECB meeting.
If the price increase continues successfully in the next session, the price will go to the level of 1.11400 before reaching the height of 1.12000 to test the resistance level.
The continued depreciation of the US dollar can push the price to rise higher and the high level reached last week will be observed which can be a target reached by the price.
But if the market gives a reaction that makes the US dollar strengthen again after this, the price can plunge towards the 1.10000 concentration zone.
A further break below the zone would expect the price to head towards the previous concentration levels around 1.09000 and then at 1.08000.
In addition to the ECB meeting, investors will also evaluate the release of United States (US) economic growth data for the reading for the second quarter of 2023.
