EUR/USD Price Analysis: EUR/USD spikes as traders react to rate cut from the Fed

• EUR/USD trades 0.35% higher on the session as traders react to fundamental developments.
• There is another resistance level close by that the bulls could look to target.

EUR/USD 4-Hour Chart

EUR/USD has spike around 50 pips or so after the Fed announced a 0.50 bps rate cut in response to the coronavirus.

Currently, the pair is struggling at the previous wave high of 1.1185.

If this level breaks the bulls could look to target the next resistance zone of 1.1239.

It seems that the market has been correct in pricing in the rate cut over the past week or so since Jerome Powell gave an interview last Friday.

EUR/USD Daily Chart

On the daily chart, the pair has now clearly broken through the trendline and could be headed for higher levels.

We must remember that the cuts could have been priced in so there may not be a frantic push higher.

If the price does hold above the trendline the next resistance higher past the one mentioned above could be nearer to 1.1347.