- EUR/USD is trading 0.22% higher following the Fed 0.50bps rate cut.
- The pair has moved higher from trading 0.46% lower earlier in the session.
EUR/USD Daily Chart
EUR/USD moved higher following the announcement from the Federal Reserve.
The central bank announced a 0.50bps rate cut as a measure to protect the economy against the coronavirus.
There has been a mixed reaction to this in general as stocks have moved lower and gold has moved up.
Either way, EUR/USD reacted in a positive manner and moved higher. It must be said the rate cuts had been priced in but few would have guessed that Jerome Powell would have moved this quickly and at this rapid rate.
Looking at the technicals now you can see that the price printed above the red trendline on the chart below.
Now it will be interesting to see if the market tests the 1.1250 resistance zone and it seems likely if there is a positive close.
If the market does move lower 1.11 has been used as a good support zone a number of times.
The red internal trendline that comes from below could also be an important support zone.
As this move was priced in there could be a pullback and the moved in EUR/USD was very fast so the pair is still in overbought areas.