EUR/USD pops on FOMC minutes, but can't stay above key 1.1850 resistance
|Currently, EUR/USD is trading at 1.1849, up 0.34% on the day, having posted a daily high at 1.1860 and low at 1.1795.
FOMC Minutes: Many Fed officials saw another rate hike warranted this year
The minutes were offering a mixed picture fro the FOMC board where the main takeaway was the concerns over inflation not just being transitory. However, Most Fed officials feel a rate hike is warranted this year.
CME Group's FedWatch: Fed Funds Futures Imply Traders See 88% Chance Of Fed Hike In December
at the same time, analysts are figuring that the ECB is edging closer to the end of its asset purchase programme, also underpinning the euro's upside. "However, and we expect the eventual normalization of monetary policy to allow investors to refocus on one of the EUR’s key structural supports—its large current account surplus relative to the US," explained analysts at Scotiabank.
EUR/USD levels
Technically, 1.1850 is proving a bit sticky as being where the 50-Day MA is located, anchoring rallies on attempts through the level. A break above there and through the 1.1880 psychological resistance opens the 1.1914 resistance line. Meanwhile, however, the daily RSI bias is up and the price is supported by the 10D SMA. A break below 1.1720 as being the 38.2% Fibo of the June-Sept rise guards the 50% Fibo, 1.1119-1.2092, at 1.1605 comes in from the cloud base. There is also a supporting and underlying long lower wick on the monthly candle.
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