EUR/USD will inevitably be heavily impacted by the post-FOMC reaction today. Economists at ING believe that the pair could test the 1.08 support.

An exploration of the 1.0700-1.0750 range is surely possible in the near term

“In line with our view for a positive impact on the Dollar, we think the 1.0800 support could be heavily tested after the Fed announcement.”

“We think that EUR/USD will ultimately come out weaker from these two days of central bank activity.” 

“An exploration of the 1.0700-1.0750 range is surely possible in the near term, even though the longer-term outlook keeps pointing to a Dollar decline and EUR/USD strength.”

See – Fed Preview: Forecasts from 16 major banks, dialing down rate hike to 25 bps