As the US dollar weakened following the FOMC meeting, the common currency posted strong gains on the day. Economic data from the eurozone was sparse. The reversal in the EURUSD came after both the ECB and the Fed came out with dovish forward guidance. Flash manufacturing PMI reports from the eurozoneare due later today.
EURUSD Likely to Consolidate Near Current Highs
The single currency managed to reverse the losses from earlier this week. Price posted strong gains as it broke past the 1.1250 level. At the time of writing, the EURUSD is trading near the 1.1300 handle. We expect price action to remain anchored around this level in the near term. The 4-hour chart signals a hidden bearish divergence which could see price dipping to 1.1250 to establish support.
