EUR/USD Retreats to 1.1050 Following Fed-Induced Volatility

EUR/USD has corrected lower by 0.6% to 1.1050 in the aftermath of the Federal Reserve's policy meeting, reversing earlier gains that pushed the pair above 1.1100. The initial surge following the Fed's rate cut proved unsustainable as traders reassessed the central bank's forward guidance and limited scope for aggressive easing. European economic concerns also weigh on the euro, with manufacturing PMI data continuing to show contraction across major economies. The pair found resistance at 1.1120 (September high) and has broken below the 1.1080 support level. Next support lies at 1.1030 (50-day moving average), while resistance has formed at 1.1100 psychological level. Trading volumes remain elevated as market participants position for potential ECB policy divergence and upcoming eurozone inflation data. The technical picture suggests further consolidation between 1.1030-1.1100 range, with downside risks prevailing if US economic data surprises to the upside.