The US dollar showed a decline in value at the end of the New York session after the market reaction to the FOMC meeting and the follow-up speech by Federal Reserve (Fed) Chairman Jerome Powell.
Interest rates remained as expected at 5.50% and investors digested Powell's post-meeting remarks.
Powell emphasized that policy was likely to be maintained, but gave no indication of a rate hike at the December meeting.
The next market focus is seen to shift to the United States (US) NFP employment data report on Friday which received a gloomy signal from the ADP employment data in the New York session yesterday.
However, the JOLTS job offer data came out with a higher figure than forecast.
Looking at the price action on the EUR/USD currency pair chart, the price initially hovered around 1.05200 before rebounding after the FOMC meeting.
The price increase continued until the Asian session this morning (Thursday) with the price seen testing the concentration level at 1.06000.
If the price increase succeeds in penetrating the zone, the bullish movement will continue for the price to reach the high level recorded last Tuesday at 1.06700.
Next, the 1.07000 resistance zone will be waiting to be tested if the bullish pattern is successfully maintained.
However, if the price instead plunges back down, a break below the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart will signal for the price decline to resume.
The target is to head towards the support zone at 1.05000 after breaking through the lows for trading this few weeks.
