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EUR/USD lacks momentum, FOMC minutes eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD fell to a fresh daily low at the beginning of the American session but lacked follow-through to break below yesterday’s lows and bounced, despite a strong ADP employment report.

    After bottoming out at 1.0714, EUR/USD climbed back to the 1.0760 zone, although it also failed to extend gains beyond that level and was confined to a phase of consolidation as investors await the FOMC latest meeting minutes to be released during the American afternoon.

    With the Fed lift-off out of the way, markets are now focusing on the path of future hikes and how fast the bank will normalize its policy.

    But ahead of the minutes, a series of US data will be released including the ISM non-manufacturing index, November factory orders and EIA oil inventories.

    EUR/USD technical levels

    In terms of technical levels, next supports are seen at 1.0710 (Jan 5 low), 1.0635 (Dec 1 & 2 highs) and 1.0550 (Dec 2 low). On the flip side, resistances might be faced at 1.0772 (Jan 6 high), 1.0824 (50-day SMA) and 1.0900 (psychological level/21-day SMA).
    For more information, read our latest forex news.

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