EUR/USD drops to fresh 2-year lows below 1.1100 as Fed cut rates as expected

• Federal Reserve cuts rates by 25bp as expected, two FOMC members against the decision. 
• US Dollar rises across the board following the statement, DXY holds above 98.00. 

The EUR/USD pair dropped from 1.1130 to 1.1084 hitting the lowest level since May 2017. Then it bounced to the 1.1100 area. Market volatility was high following the release of the FOMC statement. 

The Federal Reserve cut interest rates by 25bps as expected. It announced it will end the balance sheet reduction program in August, two months earlier. At the FOMC, two members (Rosengren and George) dissents from the decision, favoring a no cut. 

The greenback rose across the board after the announcement, hitting fresh highs but the rally so far has been limited. Now traders await Fed’s Chair Powell press conference, to being in 20 minutes. 

EUR/USD holds  a bearish tone but so far it is still defending the 1.1100 area. A consolidation below would signal more losses ahead from a technical perspective. The next strong support is seen around 1.1060.