EUR/USD fades a spike to 1.0565, ECB accounts eyed
EUR/USD is seen building on the previous rebound, having found fresh impetus from a less hawkish FOMC minutes, which weighed heavily on broad based USD demand.
EUR/USD awaits US datasets
Currently, the spot jumps +0.50% to 1.0540, having posted fresh four-day tops at 1.0564 some minutes ago. The main currency pair caught a fresh bid-wave amid aggressive selling seen in the greenback against its six major peers, as the European desks react negatively to the Fed’s backtracking on its rate hike outlook.
The FOMC minutes of last meeting revealed that many policymakers turned defensive on the outlook for further rate increases in 2017, as they raised doubts over Trump’s presidency. Trump is expected to take office as the 45th US President later this month, and all eyes remain on his pledge to revive the US economic growth by boosting fiscal stimulus.
In the meantime, markets now await the Eurozone PPI and ECB monetary policy accounts scheduled for release in the European session, while the US calendar offers the release of ADP jobs and ISM services data.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0583 (50-DMA). A break beyond the last, doors will open for a test of 1.0600 (zero figure) and from there to 1.0654 (Dec 30 high). On the flip side, the immediate support is placed at 1.0500 (key support) below which 1.0484 (5-DMA) and 1.0458 (20-DMA) could be tested.