EUR/USD preserves daily gains above 1.12 after FOMC minutes
|After an unsuccessful attempt to break above the 1.12 handle at the beginning of the NA session, the EUR/USD pair gathered momentum and rose to 1.1220 following the release of the FOMC meeting minutes. As of writing, the pair is trading at 1.1218, holding on to its daily gains.
The general assessment of the economy was largely unchanged according to the minutes as the members saw the job market strong and the consumer confidence solid. On the other hand, policymakers agreed that they need to see the data to continue to improve to verify that the recent slowdown in the economic activity was temporary. Although the expectations of a June rate hike solidified above 80% according to the CME Group FedWatch, the probability of two more rate hikes in 2017 eased to 46% from 50%, pushing the US Dollar Index below 97. As of writing, the index was down 0.34% on the day, at 96.95.
Tomorrow's economic docket will feature the weekly initial jobless claims, wholesale inventories and the trade balance data from the United States and strong readings could allow the investors to start pricing the possibility of two more rate hikes in 2017, helping the greenback recover its recent losses.
Technical outlook
The immediate resistance for the pair could be seen at 1.1265 (May 23 high) before 1.1300 (Nov. 9 high) and 1.1365 (Aug. 18 high). To the downside, supports are located at 1.1200 (psychological level), 1.1170 (daily low) and 1.1100 (May 19 low).
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