EUR/USD rises modestly after FOMC minutes, remains in range

• US Dollar drops marginally after the release of the FOMC minutes.  
• EUR/USD consolidates yesterday’s gains, remains below 1.1400.

The EUR/USD pair was trading flat for the day, around 1.1370 and after the release of the FOMC minutes of the November, meeting rose modestly, holding below daily highs and also under the 1.1400 area.  

EUR/USD climbed to 1.1390 after the minutes and pulled back quickly to the 1.1375. Price continues to move sideways in a range between 1.1350 and 1.1400, above the level it had before Jerome Powell’s speech yesterday.  

The words of the Fed’s Chairman yesterday offset today’s event of the FOMC minutes. At the November meeting, the central bank as expected kept interest rate unchanged at 2.00-2.25%. According to the document, almost all FOMC members considered a rate hike warranted ‘fairly soon’. They discussed modifying language on ‘further gradual’ rate hikes.  “A couple of participants noted that the federal funds rate might currently be near its neutral level.”

EUR/USD Short-term Levels to watch  

To the upside, resistance levels might be located at 1.1400/05 (Nov 29 high) followed by 1.1420 (Nov 22 high) and 1.1460. On the downside, support could be seen at 1.1360, 1.1325 (Nov 23, 16 low) and 1.1300.