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.

Matías Salord FXStreet

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 price	1.1064
Today Daily Change	-0.0010
Today Daily Change %	-0.09
Today daily open	1.1074

Trends
Daily SMA20	1.1049
Daily SMA50	1.1124
Daily SMA100	1.1181
Daily SMA200	1.1258

Levels
Previous Daily High	1.1076
Previous Daily Low	1.099
Previous Weekly High	1.111
Previous Weekly Low	1.0927
Previous Monthly High	1.1251
Previous Monthly Low	1.0962
Daily Fibonacci 38.2%	1.1043
Daily Fibonacci 61.8%	1.1023
Daily Pivot Point S1	1.1018
Daily Pivot Point S2	1.0961
Daily Pivot Point S3	1.0932
Daily Pivot Point R1	1.1103
Daily Pivot Point R2	1.1132
Daily Pivot Point R3	1.1188

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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