EUR/USD tests April low after hawkish Fed

The Federal Reserve's expectations on hike interest rates in June caused the Dollar's rally on Wednesday. The EUR/USD pair closed under the 55-day SMA, currently at 1.1289, and the sell-off found a cap at the April low (1.1214). This historical level is going to act as the most immediate short-term support on Thursday, but the risks are inevitably tilted to the downside. In the medium-term there is a possibility of a slide down to the 100-day SMA, which is supported by the lower Bollinger band at 1.1154/49. As for the technical studies, they are giving mixed signals on a daily basis.

54% of SWFX traders continue expecting that the Euro will depreciate against the Dollar. Moreover, only 44% (42% yesterday) of pending orders a 100-pip range from the spot see EUR/USD higher.