EUR/USD Plunges After FOMC, This Week's Target Towards $1.0600?

<p>&nbsp;The US dollar is expected to continue its strengthening pattern in a continuous movement this week even though the momentum was seen as somewhat gloomy at the end of last week.</p><p><br /></p><p>The hawkish signal by the Federal Reserve (Fed) after the FOMC meeting last week is expected to give an advantage to the US dollar, but will also be influenced by the latest data to be published.</p><p><br /></p><p>This week, the final reading of the United States (US) Gross Domestic Product (GDP) will be in focus before the PCE price index data will take center stage at the end of the week.</p><p><br /></p><p>Meanwhile, the Euro currency will continue to experience pressure due to the strengthening of the US dollar.</p><p><br /></p><p>The European manufacturing and services PMI data published last Friday is also seen adding to the pressure for the Euro to recover.</p><p><br /></p><p>Therefore, on the price chart of the EUR/USD currency pair, the price is expected to show a downward pattern again this week.</p><p><br /></p><p><br /></p><p><br /></p><p>Last week, the price managed to reach a high of around 1.07350 before the reaction to the FOMC meeting sent the price down to around 1.06200.</p><p><br /></p><p><br /></p><p>The level remained the lowest until the end of the week's trading.</p><p><br /></p><p>Continuing this week, the 1.06000 support zone is seen to be the main focus tested with the current movement in the Asian session this morning hovering around 1.06500.</p><p><br /></p><p>The price held by the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/USD chart also suggests that the bearish price pattern will continue.</p><p><br /></p><p>The drop in price if it penetrates the 1.06000 support will record the latest 6-month low with the next target to reach around 1.05000.</p><p><br /></p><p>On the other hand if the price changes direction making an increase this week, the initial resistance is at 1.07000 which needs to be tested.</p><p><br /></p><p>If it breaks through, the price has the potential to overcome the highs reached last week before heading towards the concentration zone at 1.08000.</p>