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The FED hiked interest rates as expected and also lifted expectations for 2017 from two to three rate hikes. While Janet Yellen downplays this change, the US dollar remains in high demand. This results in

This results in a big fall in EUR/USD. The pair has reached a low of 1.0533, with the 1.0520 level getting closer. The pair did dip under 1.0520 level, the December 2015 low, after the Italian Referendum.  However, that was just a temporary blip.

Update: EUR/USD fell all the way to 1.0497, well under support and also below the round level of 1.05. However,  high volatility continues and  trading is not one-sided.

Does it have the momentum to make the break and attack 1.0460, the March 2015 low? Or does Yellen’s caution limit any moves?

Update: as the press conference ends, EUR/USD stabilizes around 1.0540. Perhaps we will see further moves when Tokyo opens and a full response in the upcoming  London session.

More:  Can EUR/USD Do It 9 Times In A Row On FOMC day? – Deutsche Bank

Here is the EUR/USD chart. Resistance awaits at 1.0660 and 1.0710, but the trend remains to the downside.