The EUR/USD pair gained traction in the late NA session and stretched its upside to a fresh two-week top at 1.1870. As of writing, the pair was trading at 1.1868, losing 0.5% on the day.
Following a consolidation phase near mid-1.18s, the pair gathered strength as the greenback came under pressure after the FOMC released the September meeting minutes, which revealed that some members were worried that the low inflation may not be due to temporary factors and argued that it would be appropriate to delay hikes until they see proof of a pick-up. The US Dollar Index pushed lower below the 93 mark as the CME Group FedWatch Tool's rate hike probability dropped below 90%.
Moreover, San Francisco Fed President John Williams said that he was losing confidence that a tax reform would be seen in the next six months, further weighing on the greenback. At the moment, the index was at 92.72, lowest level since September 26, losing 0.4% on the day.
On Thursday, the economic docket from the euro area will feature the industrial production data before the weekly jobless claims and September PPI data are released from the U.S. later in the day.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, writes, "from a technical point of view, the pair presents a positive tone ahead of the Asian opening, as in the 4 hours chart, the price has managed to advance further above its 20 and 100 SMAs, with the shortest gaining upward strength below the largest, which anyway maintains a bearish slope. Technical indicators in the mentioned chart had lost upward strength, but hold near overbought readings, in line with further gains ahead, as long as pullbacks are contained around 1.1820/30, a major static support now after the pair recovered the level earlier this Wednesday. To the upside, sellers have surged on approaches to the 1.1900 figure, which means that an advance beyond the level should lead to a continued advance, up to 1.1965."
According to the analyst, supports for the pair could be seen at 1.1825, 1.1775 and 1.1730 while resistances align at 1.1890, 1.1930 and 1.1965.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Stuck within the range
AUD/USD left behind Tuesday’s strong pullback and regained upside impulse on Wednesday, advancing well north of 0.6500 the figure despite the late rebound in the Greenback. Investors will now closely follow the release of the always relevant Australian jobs report.
EUR/USD: The 1.1400 region holds the downside
EUR/USD came under late selling pressure and receded to the area of multi-day lows around 1.1460 following the firm bounce in the Greenback in the wake of the Fed’s interest rate decision and the hawkish tilt at Powell’s press conference. US markets will be closed on Thursday due to the Juneteenth holiday.
GBP/USD weakens further, confronts 1.3400
GBP/USD is currently under increasing selling pressure, testing the 1.3400 support level on Wednesday, amidst a robust recovery in the Greenback following the Fed's decision to maintain rates and Chief Powell's hawkish remarks during his press conference.
Ripple Price Prediction: XRP targets $2.65 signaling potential technical breakout
Ripple (XRP) offers signs of a bullish reversal after extending losses 9% from its recent highs at $2.34. Meanwhile, the cross-border money transfer token is trading around $2.15, while sentiment remains relatively calm in the broader crypto market.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.