EUR/USD Drops Sharply as Dollar Soars after FOMC Minutes

EUR/USD Drops Sharply as Dollar Soars after FOMC Minutes

18 May 2016, 20:20
Roberto Jacobs
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EUR/USD Drops Sharply as Dollar Soars after FOMC Minutes

The US dollar jumped in the market after the release of the minutes from the Federal Reserve latest meeting. According to the document, most officials saw a rate hike in June likely if economic conditions warrant. Greenback rose against all currencies particularly against the euro and commodity currencies.

EUR/USD was trading near 1.1300 and dropped sharply below 1.1250, falling more than 50 pips in seconds. The pair printed a fresh 3-week low at 1.1233 and it was under pressure, with the US dollar holding a strong tone in the market.

EUR/USD levels to watch

The pair is extending losses, now headed toward the third daily loss in a row and is approaching April lows that lie at 1.1215; a break below would put the price at levels last seen back in March 29. The next support levels might be seen at 1.1200 (psychological) and 1.1140/45 (March 24 low).

The pair is under bearish pressure and it is likely to continue that way unless it rises above 1.1280 - 1.1290, breaking a short-term downtrend line and on top of the 20-hour moving average.


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