EUR/USD Breaks $1.0800, Spikes 100 Pips After FOMC!

<p>&nbsp;After waiting for clues since last week, investors are finally getting a clearer direction for the current price movement in the market.</p><p><br /></p><p>The US dollar is now showing a significant decline due to the reaction to the results of the last FOMC meeting of 2023 early this morning.</p><p><br /></p><p>The Federal Reserve (Fed) kept interest rates unchanged at 5.50% as expected and Chairman Jerome Powell commented on the decision which analysts assessed as dovish.</p><p><br /></p><p>Following that, the US dollar has plunged and opened up space for major currencies to strengthen again, especially the Euro.</p><p><br /></p><p>As observed on the chart of the EUR/USD currency pair, prices have previously started to show early signs of a bullish trend change taking place.</p><p><br /></p><p>However, the displayed price increase was seen to be stuck at the resistance level of 1.08000 from Tuesday until Wednesday yesterday.</p><p><br /></p><p>The drop in price did not happen seeing that the price crossed above the support line of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart for 2 consecutive days.</p><p><br /></p><p>Finally, after the FOMC meeting early this morning, it was only then that the price managed to jump strongly and break through 1.08000 following the US dollar's decline.</p><p><br /></p><p>A jump of more than 100 pips saw the price reach the 1.09000 focus zone in trading that continued into the Asian session this morning (Thursday).</p><p><br /></p><p><br /></p><p>With the momentum expected to be maintained, the price will continue to rise higher towards the height of the 1.10000 level.</p><p><br /></p><p>That level became a price target that was previously a resistance zone tested in trading at the end of November.</p><p><br /></p><p>But investors need to remain vigilant if the situation changes again and sees the price reverse direction and make another decline towards the end of the week.</p><p><br /></p><p>For the decrease that occurs, the level of 1.08000 will be observed with the expectation that there will be a price reaction around that.</p><p><br /></p><p>If the price breaks down, this will be a warning for the price to continue the decline with the target being at 1.07000.</p><p><br /></p><p>Investors' focus will also be on the European central bank's (ECB) policy meeting today which could affect the movement of the Euro currency.</p>