EUR/USD erases gains after FOMC minutes

Matías Salord FXStreet

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

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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