EUR/USD Hits Critical Support Level Amid Hawkish US Dollar Rally

The EUR/USD currency pair has fallen back to an important support area following a more hawkish-than-expected FOMC meeting. This has strengthened the US dollar, causing the pair's value to drop in recent days.

According to Michael J Kramer, Founder of Mott Capital Management, the current support level is around $1.146, which was previously resistance in July and turned into support in June.

This area is crucial as it marks a turning point for the pair's value. If EUR/USD falls below this support level, it could lead to further declines, potentially dropping back towards the June and July lows near $1.135 or even as low as $1.128.

If support holds at $1.146, the currency pair may rebound towards $1.16, but it faces significant overhead resistance from the 10-day exponential moving average and the 50-day simple moving average sitting just above it at around $1.15.