The prior expectations of the EUR/USD reaching the 1.1200 level were not fulfilled. The rate has continued to trade near previous levels.
On Friday, the pair tested support levels near 1.1150. EUR/USD: FOMC Statement and Federal Funds Rate
The European Common Currency depreciated against the US Dollar, following the FOMC Statement release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate lost 15 pips or 0.13% right after the release. The Euro continued trading at the 1.1110 level against the Greenback.
The Federal Reserve released the US Federal Funds Rate data, which came out in line with the expectations of 1.75%.
According to the official release: "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent."
Economic Calendar Analysis
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair tried to surpass the psychological level at 1.1170. During today's morning, the pair was testing the weekly R1 at 1.1150.Hourly Chart
Since the middle of Wednesday's trading, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were set to sell, as 58% of orders in the 100-pip range were to sell and 42% were to buy. Previously, the orders were 67% bearish.
Most likely, traders reopened their short positions, as the currency rate surged. Namely, these short positions are set up to profit from a possible down retracement of the EUR/USD.