EUR/USD retests lows ahead of FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD failed to sustain intraday gains and pulled back to retest 7-month lows ahead of the FOMC minutes release, where investors will be looking for signs that confirm a rate hike in December.

    The dollar has picked up pace over the last hours, dragging EUR/USD to a session low of 1.0633, just a few pips above the 7-month bottom scored earlier. At time of writing, EUR/USD is trading at 1.0642, virtually unchanged on the day.

    Ahead of the minutes, Fed’s member Lacker, the only dissenter on the FOMC, was speaking on CNBC. He said that improvement seen in the US labor market has been substantial adding that the probability that the Fed will get behind the curve is increasing. Another member, Mester said that the US economy is able to cope with a 25 bps rate raise.

    EUR/USD levels to watch

    As for technical levels, next supports are seen at 1.0630 (Nov 17 & 18 lows), 1.0570 (Apr 15 low) and 1.0520 (Apr 13 low). On the flip side, immediate resistances could be found at 1.0692 (Nov 18 high), 1.0739 (10-day SMA),1.0757 (Nov 16 high) and then 1.0829 (Nov 12 high).
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