EUR/USD rises further above 1.1800 after FOMC minutes
The EUR/USD pair printed a fresh daily high at 1.1817, hitting the highest levels since Friday, after the release of the FOMC minutes of the latest meeting. It remains near the top, holding a bullish tone.
USD drops further after minutes
According to the minutes, many of the FOMC members saw a near-term interest rate hike as warranted but a few opposed. The document showed that most participants continue to believe that a tighter labor market will ultimately lead to inflation. The meeting included a debate on broad inflation. Many officials saw as possible that inflation could remain below the target for a longer period.
FOMC minutes: Participants felt an interest rate increase was warranted in near-term
The greenback was falling across the board before the minutes, on a low volume session ahead of US holidays and dropped further afterward. A weak USD pushed EUR/USD further to the upside. The pair is about to test Friday’s highs at 1.1820. The momentum remains strongly bullish. A slide back below 1.1780 would change the current tone.
To the upside, resistance levels might be located at 1.1820/25 (Nov 17 high), 1.1860 (last week high) and 1.1880 (Oct high). On the flip side, short-term immediate support is now seen at 1.1798, 1.1775 (European session high) and 1.1730 (Nov 22 low).