The results of the FOMC meeting early this morning had a significant impact on currency market movements, especially on US dollar trading.
The Federal Reserve (Fed) lowered interest rates by 50 basis points from the previous level of 5.50% to 5.00%, indicating an aggressive policy easing move for the first rate cut since 2020.
The US dollar weakened significantly as soon as the rate decision was announced, but recovered after the end of the conference with Fed Chairman Jerome Powell who commented on the current situation of the central bank.
It can be observed on the chart of the EUR/USD currency pair, the price jumped up as the FOMC meeting almost touched the target at the 1.12000 zone.
Despite not being able to achieve it, the price still recorded a recent 3-week high with a height of around 1.11900.
The price then plunged towards the end of the session to the 1.11000 level again.
After bouncing for a while, the price continued the downward pattern at the beginning of the Asian session to a level around 1.10700.
A bearish signal is observed with the price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the EUR/USD chart with a rebound while testing the 1.11000 level.
The lower decline is expected to continue to maintain the previous momentum targeting last week's support zone which is 1.10000.
However if the price bounces back showing the potential for upside after breaking through the MA50 barrier, the 1.12000 zone will again be the target.
It is likely that prices will be able to record new highs above the surge made during the FOMC.
