The pair EUR / USD reacted quite calmly to the Fed's decision to lower the interest rate. The dollar has slightly strengthened across the entire spectrum of the market, but this morning it is gradually losing ground, since there is no consensus in the Fed about further actions to adjust the parameters of monetary policy. Jerome Powell did not rule out a further rate cut in case of a worsening economic situation.
In our opinion, the results of the FOMC meeting are a bullish signal for the EUR / USD pair in the medium term. Earlier, the ECB reduced the rate by only 0.1%, i.e. the differential in US and EU rates has declined. According to most experts, the ECB is unlikely to conduct monetary policy adjustments this year, while the Fed may continue to cut rates. Therefore, there are prospects for a further reduction in the differential rates of the ECB and the Fed.
Today at the European session, the European currency may be affected by the statement of the ECB representative Kere. In the US, the focus will be on indexes from the Federal Reserve Bank of Philadelphia and data on sales in the secondary housing market.
On the chart, the currency pair remains in the trading range 1.0990-1.1085. At the same time, bullish signals prevail at lower time intervals, indicating a probable increase in quotations to the upper border of the range and a possible breakthrough of this level.
Resistance levels: 1.1085, 1.1100, 1.1155.
· Support levels: 1.1030, 1.0990, 1.0925.
The main scenario is an increase to 1.1100.
An alternative scenario is a breakdown of intraday support at 1.1030 and a decline to 1.0990.
The market is dominated by a moderately positive news background. Bullish signals prevail on the chart. Inside the day, we consider longs from the region of the 1.1030.