After waiting for clues since last week, investors are finally getting a clearer direction for the current price movement in the market.
The US dollar is now showing a significant decline due to the reaction to the results of the last FOMC meeting of 2023 early this morning.
The Federal Reserve (Fed) kept interest rates unchanged at 5.50% as expected and Chairman Jerome Powell commented on the decision which analysts assessed as dovish.
Following that, the US dollar has plunged and opened up space for major currencies to strengthen again, especially the Euro.
As observed on the chart of the EUR/USD currency pair, prices have previously started to show early signs of a bullish trend change taking place.
However, the displayed price increase was seen to be stuck at the resistance level of 1.08000 from Tuesday until Wednesday yesterday.
The drop in price did not happen seeing that the price crossed above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart for 2 consecutive days.
Finally, after the FOMC meeting early this morning, it was only then that the price managed to jump strongly and break through 1.08000 following the US dollar's decline.
A jump of more than 100 pips saw the price reach the 1.09000 focus zone in trading that continued into the Asian session this morning (Thursday).
With the momentum expected to be maintained, the price will continue to rise higher towards the height of the 1.10000 level.
That level became a price target that was previously a resistance zone tested in trading at the end of November.
But investors need to remain vigilant if the situation changes again and sees the price reverse direction and make another decline towards the end of the week.
For the decrease that occurs, the level of 1.08000 will be observed with the expectation that there will be a price reaction around that.
If the price breaks down, this will be a warning for the price to continue the decline with the target being at 1.07000.
Investors' focus will also be on the European central bank's (ECB) policy meeting today which could affect the movement of the Euro currency.
