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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds steady below 1.0800 ahead of EU data Premium

EUR/USD holds steady below 1.0800 ahead of EU data

EUR/USD is holding steady just shy of the 1.0800 mark in the early European morning. The US Dollar is consolidating the upside amid a cautious market tone, as investors assess Friday's US NFP blowout and hawkish Fed expectations. Eurozone data coming up next. 

EUR/USD News

GBP/USD attempts to cross 1.2050, downside looks likely amid US-China tensions

GBP/USD attempts to cross 1.2050, downside looks likely amid US-China tensions

The GBP/USD pair has attempted to extend its rebound move above the critical resistance of 1.2050 in the Tokyo session. The Cable gauged an intermediate cushion around 1.2000 amid subdued performance by the US Dollar Index (DXY).

GBP/USD News

Gold rebounds but not out of the woods yet Premium

Gold rebounds but not out of the woods yet

Gold price is making a tepid recovery attempt toward the $1,900 level at the start of the week on Monday. Gold buyers a breathing a sigh of relief after two back-to-back days of extreme sell-off.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Is this the beginning of the end for bulls?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Is this the beginning of the end for bulls?

Bitcoin (BTC) price is the glue that is holding this 2023 bull run intact for Ethereum (ETH), Ripple (XRP) and other altcoins. But chinks in BTC bulls’ armor are beginning to show, therefore, investors need to be cautious of a sudden reversal. 

Read more

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

Back in November the RBA hiked rates by a less than expected 25bps, amidst concern about the effects recent rate hikes were having on the Australian economy and ergo the housing market. At the time Governor Philip Lowe said that the RBA wanted to slow the pace.

Read more

Forex MAJORS

Cryptocurrencies

Signatures