EUR/USD Forecast: ECB and FED's Minutes in focus

The American dollar remains under pressure this Thursday, and alongside with a soft opening in European stocks, has resulted in an advance in the EUR/USD pair beyond the 1.1300 level.

Earlier on the day, another round of German weak data hit the wires, as the seasonally adjusted foreign trade balance recorded a surplus of €19.6B in August, below the previous €22.4B, whilst exports decreased by 5.2% and imports by 3.1%.

But market's attention today is focused on Central Banks, starting with the BOE's monthly economic policy meeting in a couple of hours, later on in the day the ECB and the FED will release the Minutes of their latest meetings. Investors will be looking for hints of additional QE in Europe, and if the US is still considering tightening this year.

View the Live chart of the EUR/USD

In the meantime, the EUR/USD pair 4 hours chart shows that the price retreated some from the 1.1309 high but holds above the 1.1280 price zone, and above the daily descendant trend line coming from 1.1713, just broken. The technical indicators in the mentioned time frame maintain a strong upward momentum well into positive territory, whist the 20 SMA advanced further below the current price, all of which supports additional gains, particularly if the pair breaks above 1.1335, a strong static resistance level. In that case, the rally can extend up to 1.1370 in the short term, and extend later up to 1.1410.

Retracements down to 1.1245 may attract buying interest, yet a break below this level should deny chances of an upward continuation and see the pair testing the 1.1200 level, whilst a downward acceleration below this last, exposes the 1.1160 support.

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