Before the FOMC meeting, traders sold euros to adjust their positions, causing the price to drop from the mid-1.09 level to 1.0860. During the meeting, the Federal Reserve repeated its plan for two interest rate cuts this year and gave a weak outlook for the economy and inflation, suggesting a possible recession. Some investors expected no rate cuts, so the euro rose to 1.0913.
However, the euro could not rise above the recent high of 1.0954, showing strong resistance. The euro had gained over 500 points earlier due to hopes for Germany’s financial reforms and a temporary ceasefire in Ukraine. Now, some traders are selling to take profits.
If this short-term adjustment ends and the euro moves above 1.0954, it may rise further toward 1.12.
EUR/USD Price Range Prediction: 1.0940 – 1.0810
Note: This information does not guarantee profits. Please make your own decisions when trading.