EUR/USD trades at the lowest level since mid-August. The pair tests 50-day SMA support for the first time in five months. The dollar draws bids as the Fed expects faster economic recovery. EUR/USD is feeling the pull of gravity on Thursday, as the dollar gains altitude on Federal Reserve’s positive comments on the economy. The pair currently trades at the 50-day simple moving average support at 1.1742. The average has come into the play since May 25. Also, EUR/USD’s current level was last seen on Aug. 12. Fed upgrades language on economy On Wednesday, the central bank said that it expects the US economic recovery from the coronavirus crisis to gather pace and foresees unemployment falling faster than the central bank expected in June. The bank kept rates pinned near zero and reiterated tolerance for high inflation, as expected. The decision to upgrade the economic outlook put a floor under the greenback. EUR/USD faced rejection at 1.1883 after the Fed and has been falling ever since. The European FX desks could join the dollar selling bandwagon, yielding a more profound decline in EUR/USD. However, the pair may defend the 50-day SMA support if the European Central Bank member De Guindos downplays the need for additional stimulus during his speech at 08:00 GMT. Markets will likely ignore the final Eurozone consumer price index for August, due at 09:00 GMT unless the data carries a significant upward or downward revision to preliminary forecasts. The focus would shift to the US Initial Jobless Claims and the US housing data during the early North American trading hours. Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD: Eyes Bank of England to combat post-Fed US dollar rally FX Street 2 years EUR/USD trades at the lowest level since mid-August. The pair tests 50-day SMA support for the first time in five months. The dollar draws bids as the Fed expects faster economic recovery. EUR/USD is feeling the pull of gravity on Thursday, as the dollar gains altitude on Federal Reserve's positive comments on the economy. The pair currently trades at the 50-day simple moving average support at 1.1742. The average has come into the play since May 25. Also, EUR/USD's current level was last seen on Aug. 12. Fed upgrades language on economy On Wednesday, the central bank said that it expects… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.