FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the FOMC Minutes are out after a long day of waiting, announcing what most market participants suspected, but needed to confirm.
“Tapering may end with a 15B cut in October if the economic outlook holds, but said nothing about rates. So the easing era may be at its end for the US, but the rising rates one has not yet have a date”.
“The Minutes also said that while growth suffered at the beginning of the year, has started to pick up, but that’s not enough to trigger a dollar rally: market players may now realize the end of QE does not mean the country is ready to raise rates”.
“The EUR/USD advanced up to 1.3642 early US opening, on the back of a stock recovery across the world: European indexes closed mostly up, while US are in green after two days of selling”.
“Initial market reaction saw the pair edging down to 1.3610 from where it quickly bounced back above mentioned daily high. The upward potential seems a bit more constructive now in the short term, with the hourly chart showing price advancing above its 20 SMA as indicators head north above their midlines”.
“In the 4 hours chart technical readings gain also upward tone, with price now struggling to overcome 1.3645, intermediate resistance. Once above, next resistance area comes at 1.3680/1.3700 where a Fibonacci level converges with recent highs”.