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EUR/USD treading water around 1.1350, Fed minutes eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bears take a breather from their downward momentum, allowing the EUR/USD pair to consolidate the heavy losses, as market inch closer towards the FOMC minutes due later in the US session.

    EUR/USD awaits FOMC minutes

    Currently, EUR/USD trades -0.33% lower at 1.1347, wavering in the vicinity of the session lows struck at 1.1341 shortly after the European open. The main currency pair is seen consolidating the downside before the next leg lower, which could be possible if the FOMC minutes turn out less dovish/hawkish and bolster the recovery in the greenback across the board.

    The bearish bias around the EUR/USD pair can be also partly attributed to the poor German industrial production data, which showed that the industrial activity dropped notably from 2.3% to -0.5%, while the yearly print moderated to 1.3% from 1.8%. While the Euro zone retail PMI print also witnessed a decline from the previous reading.

    All eyes now remain on the March FOMC minutes release, which is likely to spur volatility and have significant impact on the major.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1400 (round number). A break beyond the last, doors will open for a test of 1.1437/50 (Apr 1 High/ Oct 2015 levels). On the flip side, the immediate support is placed at 1.1306/1.1300 (1h 200-SMA/ round number) below which at 1.1274/73 (daily S3/ 20-DMA) could be tested.
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