EUR/USD drops to fresh 2-year lows below 1.1100 as Fed cut rates as expected

Federal Reserve cuts rates by 25bp as expected, two FOMC members against the decision.
US Dollar rises across the board following the statement, DXY holds above 98.00.

Matías Salord FXStreet

The EUR/USD pair dropped from 1.1130 to 1.1084 hitting the lowest level since May 2017. Then it bounced to the 1.1100 area. Market volatility was high following the release of the FOMC statement.

The Federal Reserve cut interest rates by 25bps as expected. It announced it will end the balance sheet reduction program in August, two months earlier. At the FOMC, two members (Rosengren and George) dissents from the decision, favoring a no cut.

The greenback rose across the board after the announcement, hitting fresh highs but the rally so far has been limited. Now traders await Fed’s Chair Powell press conference, to being in 20 minutes.

EUR/USD holds a bearish tone but so far it is still defending the 1.1100 area. A consolidation below would signal more losses ahead from a technical perspective. The next strong support is seen around 1.1060.

EUR/USD

Overview
Today last price	1.1138
Today Daily Change	-0.0020
Today Daily Change %	-0.18
Today daily open	1.1158

Trends
Daily SMA20	1.1213
Daily SMA50	1.1241
Daily SMA100	1.1241
Daily SMA200	1.1306

Levels
Previous Daily High	1.1162
Previous Daily Low	1.1132
Previous Weekly High	1.1226
Previous Weekly Low	1.1101
Previous Monthly High	1.1414
Previous Monthly Low	1.116
Daily Fibonacci 38.2%	1.115
Daily Fibonacci 61.8%	1.1143
Daily Pivot Point S1	1.1139
Daily Pivot Point S2	1.1121
Daily Pivot Point S3	1.111
Daily Pivot Point R1	1.1169
Daily Pivot Point R2	1.118
Daily Pivot Point R3	1.1198

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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