The FOMC meeting took center stage early this morning with investors seeing interest rates kept unchanged at 5.50%.
The US dollar showed a decline after the meeting, but the movement was not very significant while the market was still digesting the speech by the Chairman of the Federal Reserve (Fed) Jerome Powell who maintained the dovish tone as before.
Powell signaled that interest rate cuts would be implemented as early as September if inflation continued to decline and other data reassured the central bank.
The NFP jobs report on Friday will be the next focus for the Fed.
Examining the effect of price movement on the chart of the EUR/USD currency pair, the price hovered above the 1.08000 support zone from Tuesday to yesterday.
At the beginning of yesterday's New York session, the price showed a drop close to 1.08000 before rebounding after the FOMC meeting.
The price movement is slow around 1.08300 in the Asian session this morning (Thursday) but there are early signals for the bullish movement to start when the price is above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the chart.
With the US dollar expected to weaken, prices are more likely to rise before surpassing the levels reached yesterday.
The continued rise will lead to around 1.09000 to test the resistance zone.
However, if the situation changes, the price drop will once again test the support at 1.08000.
Breaking lower down will be a bearish signal for the price with an expected drop towards around 1.07000.
