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EUR/USD drops to test daily lows after Fed cut rates as expected

  • US Dollar rises modestly after 25bps cut from the Fed. 
  • Euro down versus USD; unchanged versus GBP, CHF. 

The EUR/USD pair was hovering around 1.1065 and dropped 1.1038, approaching daily lows after the release of the FOMC statement as the US Dollar rose moderately across the board. 

As expected, the Fed cut rates 25bp to 1.75%-2.00%. The new projections show that seven out of 17 Fed staff members see another rate cut this year. Two members (George and Rosengren) voted against the rate cut while one member (Bullard) wanted a 50bps cut. Now trader await Powell’s press conference. 

The Greenback rose immediately after the release of the statement but then pulled back. Equity prices turned lower but then moved off lows. 

EUR/USD Levels to watch 

So far EUR/USD has remained with today’s range. To the downside, immediate support might lie around 1.1035 followed by the strong 1.0990 area and 1.0960. On the upside, 1.1070/75 continues to be the resistance to break for a test of 1.1105/10. A close above 1.1110 would point to a continuation of the rally from 1.0925. 

More levels

EUR/USD

Overview
Today last price1.1064
Today Daily Change-0.0010
Today Daily Change %-0.09
Today daily open1.1074
 
Trends
Daily SMA201.1049
Daily SMA501.1124
Daily SMA1001.1181
Daily SMA2001.1258
 
Levels
Previous Daily High1.1076
Previous Daily Low1.099
Previous Weekly High1.111
Previous Weekly Low1.0927
Previous Monthly High1.1251
Previous Monthly Low1.0962
Daily Fibonacci 38.2%1.1043
Daily Fibonacci 61.8%1.1023
Daily Pivot Point S11.1018
Daily Pivot Point S21.0961
Daily Pivot Point S31.0932
Daily Pivot Point R11.1103
Daily Pivot Point R21.1132
Daily Pivot Point R31.1188

Author

Matías Salord

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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