EUR/USD hits fresh highs after FOMC minutes

EUR/USD moved to the upside after the release of the FOMC minutes. The pair reached a fresh daily high at 1.1763, up less than 25 pips the above level it had before  Fed’s document. 

The pair still holds a bullish tone as the US dollar weakens across the board. EUR/USD was flat for the day before the minutes, hovering around 1.1735, far from the lows, boosted after US President Trump ended the Manufacturing Council & Strategy Policy forum. 

The minutes showed no major surprises. “Several” Fed official mentioned that inflation risks could be to the downside however, “most” of them see inflation rising over the next couple of years. Most supported a move regarding the balance sheet at the next meeting. 

FOMC Minutes: Policymakers agreed a fall in longer-term inflation expectations would be undesirable

Technical levels 

To the upside, resistance levels might be ween at 1.1755/60 (daily high), 1.1785 (Aug 19 high) and 1.1815/20. On the flip side, support could be located at 1.1720 (20-hour moving average), 1.1680 (daily low) and 1.1650 (Jul 27 low).