On Wednesday, the EUR/USD currency exchange rate retreated after touching the 1.1200 level on Tuesday.
In general, the rate's retreat was expected to test support levels in the range from 1.1157 to 1.1120.
FOMC Rate Cut
The Euro appreciated against the US Dollar, following the FOMC Statement release on Tuesday at 15:00 GMT. The EUR/USD exchange currency rate gained 61 pips or 0.55% after the release. The Euro continued trading at the 1.1200 level against the Greenback after the release.
The Federal Open Market Committee cut the Federal Funds Rate to a target range of 1.00% to 1.25% at an unscheduled emergency meeting.
The US policymakers announced the cut of the interest rate by a half of a percentage point in response to the increasing economic threat from the coronavirus outbreak.
Economic Calendar Analysis
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair tried to surpass the resistance formed by the Fibo 38.20% and the weekly R2 at 1.1200. During today's morning, the pair was trading near the given resistance.Hourly Chart
On Monday, the traders of the Swiss Foreign Exchange were short on EUR/USD, as 65% of all open position volume was in short positions.
By the middle of Tuesday's trading, the sentiment was 68% short, and on Wednesday, 72% of volume was short.
Meanwhile, set up pending orders were set to sell, as 57% of orders in the 100-pip range were to sell and 43% were to buy.
Previously, 63% of orders were to sell and 37% were to buy.