EURUSD showing weakness below the 1.10 price zone after Fed meeting

Currently we can see that the EURUSD moves below the 1.1000 level and 200 SMA (H1 chart), after the yesterday’s Fed meeting.

This pair technically has shown a very strong weakness , since it’s forming a bearish pattern in the H1 chart. The strongest support has found near to the 1.0900 level. In a way, it was expected that the Fed would keep unchanged interest rates at October’s meeting, which was also an expectation that had the Chief Currency Analyst at FXStreet, Valeria Bednarik.

Because there were no major changes in the FOMC statement this month in terms of monetary policy, the US dollar continues to move in an upward bias, weakening the EUR. Bednarik proposed the following scenario for this currency:

“With the market focused on December, a no-change in the previous wording will likely be seen as dollar positive, as hopes for a rate move before the year-end will remain high.”

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