EUR/USD erases gains after FOMC minutes
|- EUR/USD retreats further and trims most of the day's gains.
- US dollar recovers ground across the board, as minutes appear "not so dovish".
The EUR/USD pair dropped further from the highest level in two weeks following the release of the minutes from the latest FOMC meeting. Earlier today, EUR/USD hit 1.1370, and it just fell to 1.1334, moving closer to daily lows. Now the pair is flat for the day, after finding resistance at the 20-day moving average and following US dollar strength on the back of Fed’s minutes.
According to the document, several participants saw further rate hikes appropriate in 2019, and almost all thought it desirable to announce a plan to stop reducing Fed’s asset holdings later this year. FOMC members agreed that it was important to be flexible in managing the process of balance sheet normalization. Market participants appear to have interpreted the minutes as “not so dovish”, taking into account the US dollar appreciation that followed the document.
Levels to watch
The euro rose from last week lows more than a hundred pips. Still, the chart points to the upside, but the momentum eased on Wednesday. Now EUR/USD is flat for the day, hovering around 1.1340. The upside was capped today by the 20-day moving average. A daily close above it (currently at 1.1360) would add support to further gains. While on the flip side, a slide back below 1.1310, could increase the bearish pressure.
EUR/USD
Overview:
Today Last Price: 1.1341
Today Daily change: -0.0002 pips
Today Daily change %: -0.02%
Today Daily Open: 1.1343
Trends:
Daily SMA20: 1.1368
Daily SMA50: 1.1392
Daily SMA100: 1.14
Daily SMA200: 1.1524
Levels:
Previous Daily High: 1.1358
Previous Daily Low: 1.1276
Previous Weekly High: 1.1344
Previous Weekly Low: 1.1234
Previous Monthly High: 1.1586
Previous Monthly Low: 1.1289
Daily Fibonacci 38.2%: 1.1327
Daily Fibonacci 61.8%: 1.1307
Daily Pivot Point S1: 1.1293
Daily Pivot Point S2: 1.1243
Daily Pivot Point S3: 1.121
Daily Pivot Point R1: 1.1376
Daily Pivot Point R2: 1.1409
Daily Pivot Point R3: 1.1459
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