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
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.