EURUSD Surge Higher, As U.S Dollar Weakens On FOMC

On Wednesday, the U.S dollar index which measures the overall value of the green buck’s strength slipped lower. FED Chair Jerome Powell showed interest not to change the interest rate in 2020. Such a dovish statement refueled the EURUSD bulls. EURUSD price breached the critical resistance at 1.1093 on this event. Currently, the price is aiming for the high of 3rd November at 1.1173. This level might cap the bullish rally in EURUD price. However, if the bulls manage to clear this level, we might see a bullish trend reversal in the EURUSD pair from the starting of 2020.

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If the resistance at 1.1146 holds, EURUSD price might fall towards the 1.1093 level. This level might provide significant support to the EURUSD pair since we have plenty of supportive candles just below this level. However, a daily closing of the price below this level might push the EURUSD pair towards the critical support at 1.0997.

Breaking below this level might be tough for the EURO bulls since this level was well respected in the past. But a decisive break of the support at 1.0997 might result in a heavy fall in the EURUSD pair. Considering the technical and fundamental parameters, the EURUSD bulls might control the market until it reaches the critical resistance level at 1.1173. So, going short on this pair in the current scenario might be an immature act.Download our latest quarterly market outlook for our longer-term trade ideas.

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