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Less dovish minutes favours EUR/USD's LHS

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/USD did not quite know what to make of the FOMC minutes and was trading in a narrow range and directionless on the release. However, as markets digest the headlines within the minutes, there is a bid going through for the greenback and EUR/USD is turning soft.

    EUR/USD has been fragile in a sideways cent of a range since the end of March's rally met sellers at the top of that range between 1.1325/30 and 1.1437 the high. The FOMC minutes have confirmed that there were two members calling for a 25 bps rate hike in March while the majority saw global conditions posing risks to US Outlook while, until now, the FOMC generally agreed that the US has been resilient amid global events. Overall, there was not the same dovishness as the March statement portrayed and that supports the outlook for rate increases this year depending on data, hence EUR/USD's left hand side (LHS) getting some affection here.

    EUR/USD levels

    EUR/USD is offered with the 100 sma at 1.1382 on the hourly the next test to the downside guarding the mid point of the sideways channel. A break of 1.1350 would trigger a move to test the bulls commitments at 1.1320 and the 200 sma on the same hourly time frame would then be under pressure at 1.1314 exposing 29th March 1.1195 rally.
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