EUR/USD: Volatile, but the consolidation continues

Today we had the Federal Reserve’s announcement out of the US, where the central bank has raised its interest rates by 25 basis points as expected. The Euro versus the Dollar became very volatile after the announcement and tried to break below the 1.0900 and above the 1.1000 level, but then it settled around the 1.0900 level again. On the daily chart we can see that the 55 day exponential moving average (purple line) is around the 1.0900 level and continues acting as a good support. The direction of the pair now depends on the future fundamentals from the United States and the Eurozone. In order for the pair to break below the 1.0900 level, the US fundamentals must come out a lot better than expected and in order for it to break above the 1.1000 level, the Eurozone fundamentals must also come out a lot better than expected.