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.
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