The currency pairing of EUR/USD experienced an upswing, surging from 1.1045 to 1.1091 and culminating in a one-week pinnacle following the anticipated announcement from the Federal Reserve, revealing a rate hike of 25 basis points while insinuating a possible suspension.
The Federal Reserve fulfills as projected
The US central banking system heightened interest rates with a prudent contortion, generating a downward pressure on the US Dollar. Consequently, the DXY index dwindled to 101.08, marking a recent weekly low. Simultaneously, US two-year returns descended beneath 3.90%. At exactly 18:30 GMT, Chair Powell will undertake a press conference.
The EUR/USD currency pairing ascended towards the critical zone of 1.1100, proceeding to slightly withdraw while maintaining an optimistic pulse above the area of 1.1050. A break exceeding 1.1100 could activate a surge and inaugurate access to the maximum level from March 2022.
On the other hand, a recession under 1.1050 should confine the currency pairing within the previous range. Further, beneath the pivotal support, the following level of support is apparent at 1.0950, with a potential slide lower uncovering 1.0900/10.