The FOMC meeting became the focus of the entire world early this morning to find out the answer from the Chairman of the Federal Reserve (Fed) Jerome Powell regarding their monetary policy.
Before the meeting, the US dollar had already shown a brisk movement at the beginning of yesterday's New York session.
ADP employment data which measures the private sector in the United States (US) came with weak figures, reacting to the relatively significant depreciation of the US dollar.
However, the US dollar has bounced back after Powell signaled that interest rate cuts will not be implemented in March.
Expectations for existing policy to be maintained have supported the recovery of the US dollar with the focus now turning to the US NFP jobs data report tomorrow.
Observing the price movement on the chart of the EUR/USD currency pair, the price was seen to make an increase yesterday up to the 1.09000 zone.
But then the price plunged back to 1.08000 at the end of the New York session following the reaction to the FOMC meeting.
The 1.08000 level is seen to still function as a support for the price as at the beginning of last week where the price hovered slowly around that during the Asian trading session this morning.
If a lower drop below 1.08000 occurs, it is likely that the bearish price trend will continue for the price towards the latest target at 1.07000.
The situation will occur if the US dollar continues to strengthen and continue its momentum after the meeting.
However, the situation is changing, a rebound in prices can happen from the 1.08000 level that is being tested this morning.
The rebound is likely to test the 1.090000 zone again before continuing higher to re-reach resistance at 1.10000.
