EUR/USD drops further below 1.1400 after FOMC statement

The EUR/USD pair rose modestly after the release of the FOMC statement and climbed to 1.1409. But it quickly weakened, breaking below previous lows. I  |  08/11/2018 19:09
  • EUR/USD spikes to 1.1409 and reverses sharply, falling to fresh lows after FOMC statement. 
  • Federal Reserve leaves rates unchanged as expected, makes no major changes to the statement.

The EUR/USD pair rose modestly after the release of the FOMC statement and climbed to 1.1409. But it quickly weakened, breaking below previous lows. It fell to 1.1370 and it was trading near the lows, under pressure, headed toward the lowest close since the beginning of the month. 

The US central bank, as expected, left the Fed Funds rate at  2.00- 2.25%, The statement contained practically no changes from the September meeting. The US dollar moved initially lower but then reversed sharply hitting fresh highs across the board, equity prices remained steady and gold prices trimmed losses. 

EUR/USD Levels to watch 

To the upside, the immediate resistance is seen at 1.1420 (20 hour moving average), 1.1445 (Nov 8 high) and 1.1475. On the flip side, if the euro drops further support could be located at 1.1370 (Nov 2 low), 1.1350 (Nov 4 low) and 1.1335. The last area protects the key area around 1.1300 that offered support in August and also in October, a break lower would open the doors to more losses. 

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