Following the FOMC results, the euro fell from around 1.05 to the mid-1.03 range. Yesterday, short covering for the euro was strong, and the price was pushed back up to 1.0422. However, strong U.S. data, such as GDP and existing home sales, caused the dollar to rise again, bringing the euro back down to 1.0355. It did not reach the previous post-FOMC low of 1.0345.
The policy difference between the Federal Reserve (Fed) and the European Central Bank (ECB) suggests continued selling pressure on the euro. However, the market is still adjusting after the euro dropped nearly 170 points in a short period. The previous low of 1.0345 and the November 22 low of 1.0334 are seen as strong support levels.
If the euro clearly falls below these support levels, it is expected to test parity (1.0000).
EUR/USD Predicted Range: 1.0420– 1.0300
Note: The above information does not guarantee profits. Make your own decisions when trading.