EUR/USD Price Forecast: US Dollar eases ahead of FOMC meeting Minutes

Valeria Bednarik FXStreet

the

EUR/USD Current price: 1.1667

ECB President Christine Lagarde noted the EU economy proved resilient.
The Federal Open Market Committee will release the Minutes of the July meeting.
EUR/USD gains upward traction in the near-term, but lacks enough momentum.

The EUR/USD pair keeps trading lifeless around 1.1660 on Wednesday, with the US Dollar (USD) preserving a modest momentum across the FX board. So far this week, market players have been unable to find a clear directional catalyst. Things may change later in the American session, as the Federal Open Market Committee (FOMC) will release the minutes of the July 29-30 policy meeting. Furthermore, some Federal Reserve (Fed) officials will deliver speeches at different scheduled events.

Earlier in the day, European Central Bank (ECB) President Christine Lagarde spoke at the International Business Council of the World Economic Forum, delivering some interesting comments about the European Union (EU) situation. Lagarde said the Euro area economy proved resilient earlier this year in the face of a challenging global environment, yet added that the slowdown in growth has already been evident in Q2. Finally, she added that trade deals have not eliminated uncertainty.

Other than that, United States (US) President Donald Trump resumed its attack on Fed’s Chair Jerome Powell: “Could somebody please inform Jerome 'Too Late' Powell that he is hurting the Housing Industry, very badly? People can’t get a Mortgage because of him. There is no Inflation, and every sign is pointing to a major Rate Cut. 'Too Late' is a disaster!” Trump shared on Truth Social. He also called on Fed Governor Lisa Cook to resign over alleged mortgage fraud.

Regarding the FOMC meeting minutes, it is worth remembering that there were two dissenters, Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller. The document may shed additional light on why they preferred an immediate rate cut.

On a downside note, Trump’s tariffs and inflation-related data, ever since the Fed meeting, have revived speculation about heating up price pressures, cooling down policymakers’ urge to trim rates.

EUR/USD short-term technical outlook

Technically, EUR/USD has made no progress. The pair keeps trading in a well-limited range just above its 20 Simple Moving Average (SMA) in the daily chart. The latter turned marginally lower, now providing dynamic support at around 1.1635, yet the 100 and 200 SMAs maintain their upward slopes below the shorter one. The same chart shows the Momentum indicator keeps advancing within positive levels, diverging with the lower lows in price. Finally, the Relative Strength Index (RSI) indicator bounced modestly from around its midline, aiming marginally higher at around 52.

The near-term picture shows that the ongoing advance had a limited potential. The EUR/USD pair is battling a mildly bearish 20 SMA in the 4-hour chart, while the longer moving averages head modestly lower below the current level. At the same time, technical indicators turned north, with the Momentum indicator still below its 100 line and the RSI indicator advancing at around 52.

Support levels: 1.1635 1.1585 1.1540

Resistance levels: 1.1700 1.1740 1.1785

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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