- FOMC minutes: Fed not interest in negative rates.
- US dollar remains steady after minutes, EUR/USD above 1.1250.
The EUR/USD is holding onto daily gains, hovering slightly above 1.1250. Market participants ignored FOMC minutes and the greenback continued to consolidate. Earlier on Wednesday, the pair jumped from weekly lows to 1.1274, hitting a two-day high.
The minutes from the latest FOMC meeting contain no surprises. The document showed Fed officials agreed on the need for more analysis of the yield curve control. Negative interest rates do not appear to be an attractive policy tool for FOMC members. Markets remained steady after the minutes, with equity prices showing marginal gains.
Short-term technical outlook
From the top, EUR/USD pulled back finding support at 1.1250. The pair continues to move sideways in a range between 1.1285 and 1.1185. It bottomed on Wednesday a 1.1184, the lowest since June 22 but it quickly rebounded rising back above 1.1200.
From a technical perspective, the bias is skewed to the downside in EUR/USD as it stays below the 20-day moving average and a downtrend line around 1.1265/70. In order to clear the way to more losses, it needs a daily close under 1.1200. On the upside, a confirmation above 1.1270/75, would remove the bearish bias, suggesting a rally above 1.1300.
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