The EUR/USD dipped 35 base points on Wednesday at 19:00 GMT, as the US Federal Reserve announced that it would reduce stimulus. However, the dip was followed by a surge, as the markets realized that despite the decrease the Fed is still set to increase USD supply.
By the middle of Thursday’s trading, the pair had returned to the 1.1320 level. In the near term future, the pair could test the resistance of the 1.1320/1.1325 zone, which represents the recent high levels.
If the EUR/USD breaks the resistance of the 1.1320/1.1325 zone, the rate could reach the December high level zone at 1.1355/1.1360. Above the December high, the pair might be stopped by the weekly R1 simple pivot point at 1.1373.
Meanwhile, a decline of the rate is most likely going to look for support in the weekly simple pivot point at 1.1300. Below the pivot point, take into account the 50, 100 and 200-hour simple moving averages spread out from 1.1280 up to 1.1290.