The announcement of interest rates maintained by the Federal Reserve (Fed) at the latest meeting early this morning did not have a significant impact on the movement of major currencies.
However, the US dollar experienced a depreciation in value towards the end of the New York session after a dovish follow-up statement delivered by Fed Chairman Jerome Powell.
With economic forecasts downgraded due to concerns over the Trump administration's policies, the US dollar risks continuing to move in a weak performance until the end of this week.
It can be observed that the price movement on the EUR/USD currency pair chart on Wednesday slightly decreased below the 1.09000 level while waiting for the FOMC meeting decision.
However, after the decision, the price rebounded from around 1.08600 to the 1.09100 level before leveling off around that at the opening of the Asian session this morning.
The price being below the Moving Average 50 (MA50) barrier line on the 1-hour timeframe of the EUR/USD chart triggers a bearish signal.
If the US dollar continues to weaken and pushes the rise in the 1.09000 zone past the MA50 barrier, the price is seen showing the potential to continue the previous upward pattern.
The next target is at the 1.10000 level to record a new 5-month high.
On the other hand, if the price plunges down from the 1.09000 zone, the level around 1.08000 is likely to be tested and the price reaction will provide an indication of the next direction.
Breaking through that level, the bearish signal is clearer before the price continues to decline towards 1.07000.
