EUR/USD - EUR/USD Fell Following Fed Rate Hike - 12/15/2016 (GMT)

The world’s most traded currency – the EUR/USD pair – plunged more than 1% since yesterday as it fell victim to U.S. dollar strength supported by FOMC decision to raise rates by 25 points as, as expected, and looking for more. The common currency slipped below the significant level 1.0505, which it was the lower band of the weekly trading range, with the upper band the 1.1620 resistance level. The price almost hit our suggested target at 1.1460 and recorded a fresh 21-month low at 1.1468 (see technical analysis here: http://bit.ly/2gZf3Y6), however, ended the day near its opening price. Currently, is moving slightly below the 1.0505 and seems ready to approach the next support barrier or moreover the 1.0200 psychological level.

On the 4-hour chart, the price is developing below the three SMAs and during yesterday’s session, it rebounded on the 50-SMA. Also, technical indicators are biased lower after entering the negative territory. The MACD oscillator had a bearish crossover with its trigger line while the RSI indicator is falling near the 30 level.