Dollar pulls back from a 6-year low, FOMC minutes eyed

The U.S. dollar index pulled back from a 6-year low yesterday as price managed to close bullish following a prolonged decline. News about President Trump's plans for the budget, which amounts to $4.1 trillion also helped to breathe some life into the greenback.

Gold prices slipped, including the euro which has been on a steady incline. The flash PMI's from the Eurozone continued to show an increase as the Eurozone's manufacturing activity rose to 57 in May, up from 56.7 while the services PMI slipped to 56.2 from 56.4 previously.

In the U.S., the Markit's manufacturing PMI was at 52.5 from 52.8 a month ago while services PMI rose to 54, up from 53.1 a month ago.

Looking ahead, the FOMC meeting minutes will be coming up today as well as the rate statement from the Bank of Canada. No changes are expected from the BoC at today's meeting.

EURUSD intraday analysis

EURUSD (1.1179): EURUSD attempted to post another rally yesterday, reaching as high as 1.1263 as the euro gave up the gains and slipped back to close with a bearish engulfing pattern.

Price action remains supported within the 1.1200 and 1.1100 levels in the near term, and any declines could see the support at 1.1100 holding up. Only a break down below this support will trigger some downside towards 1.1000 where the next support is likely to be formed. On the 4-hour chart, the breakout was as expected after EURUSD formed a doji within the rising wedge pattern.

GBPUSD intraday analysis

GBPUSD (1.2976): The British pound continued to consolidate near the 1.3000 handle, and the bearish bias is likely to extend to the downside towards 1.2800 where support could be formed. On the 4-hour chart, theprice is currently trading within the rising wedge pattern. We could expect a possible retest back to 1.3000 level where resistance could be formed, but a breakout from the rising wedge pattern is quite likely.

EURCAD daily analysis

EURCAD (1.5130): The EURCAD has been in a steady rally over the past two months. However, price action is likely to show signs of topping out at the current levels.

A breakout from the rising wedge pattern could possibly validate this view. With the BoC's interest rate meeting today, a hawkish statement from the central bank could potentially see some downside in EURCAD. Support is found at 1.4832 followed by 1.4591. To the upside, a breakout above 1.5146 is required for EURCAD to continue pushing higher.