After the FOMC, EUR/USD Suddenly Plunges to 180 Pips!

<p>&nbsp;After the lackluster market movement after the end of the FOMC meeting, investors were surprised by the resurgence of the US dollar in the New York session yesterday with a drastic strengthening of prices on the main charts.</p><p><br /></p><p>This is due to the publication of the United States (US) economic growth data for the second quarter which was higher than expected.</p><p><br /></p><p>The published preliminary reading forecast a slight contraction to 1.8% from 2.0% growth for the previous first quarter. However the published figure rose to 2.4%.</p><p><br /></p><p>This is seen to support the view of Federal Reserve (Fed) Chairman Jerome Powell who said that interest rate hikes are still an option to continue at the rest of this year's meeting.</p><p><br /></p><p>Meanwhile, the Euro lost ground even though the European Central Bank (ECB) met with forecasts to increase interest rates by 25 basis points to 4.25%.</p><p><br /></p><p>ECB President Christine Lagarde was seen pulling the strings like Jerome Powell, but without specifying the course of action for further monetary policy.</p><p><br /></p><p>Therefore, the market needs to rely on the latest data that will be published later to get an overview of the ECB's policy direction.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>The price chart of the EUR/USD currency pair saw a daily plunge of up to 180 pips which reversed the previous bullish pattern.</p><p><br /></p><p>The price initially reached a high of around 1.11500 before plunging below the 1.10000 level.</p><p><br /></p><p>Prices hovered slowly around that zone at the close of the New York session and remained flat for the start of the Asian session.</p><p><br /></p><p>A lower decline if continued is seen to test the 1.09000 zone before extending the decline to around 1.08000.</p><p><br /></p><p>However, if the price manages to jump again at the end of the week, the increase above the 1.10000 level will try to regain the height reached by the price yesterday.</p><p><br /></p><p>Next, the 1.12000 level is still waiting to be tested as the nearest resistance for the price.</p>