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EUR/USD hits fresh daily highs after FOMC minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The US dollar weakened across the board after the release of the FOMC minutes from the historic December meeting. EUR/USD gained momentum and rose from 1.0755, breaking above 1.0771 (previous high) and peaked at 1.0797. Price was holding near the top.

    According to the minutes, the decision to raise rates in December was a close call for some of the FOMC voters. The document gave no clues about the next rate hike, noting that the normalization process will be gradual.

    “Overall, taking into account domestic and foreign developments, members saw the risks to the outlook for both economic activity and the labor market as balanced, and they expected that, with gradual adjustments in the stance of monetary policy, economic activity would most likely continue to expand at a moderate pace”, the minutes stated.

    EUR/USD double bottom?

    Today the pair dropped to 1.0713, area located around yesterday’s lows, forming a potential double bottom in the short term. Currently, with the pair above Asian session highs, the possible target of the formation is around 1.0830, considering that the distance between 1.0710/20 and 1.0770 is 60/70 pips.

    EUR/USD needs to hold above 1.0760/70 in order to keep the bullish bias intact; if it falls below, it would invalidate the formation.
    For more information, read our latest forex news.
     

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