The EURUSD price is little changed today as investors react to the FOMC minutes released yesterday and the likelihood of a stimulus in the United States. The pair is trading at 1.1771, which is slightly higher than last week’s low of 1.1610.
The Federal Reserve released its minutes for the recent meeting yesterday. The minutes contained relatively no new information. As expected, the members lamented about the need for more fiscal stimulus. They also assessed other options, including adding more funds to their asset purchases and prolonging the duration of the purchases. In the rate decision, the bank decided to leave interest rates unchanged between 0% and 0.25%.
This week, several Fed speakers, including Jerome Powell, Neel Kashkari, and John Williams have added pressure on congress to act. They have argued that the US needs more fiscal stimulus to help ensure that recent growth is sustained. Consider the statement below by Kashkari.
Today, there will be no major market-moving data from Europe and the United States. Sure, we will receive the jobless claims data and the housing starts and building permits. However, as is in the past, these numbers will not have a major impact on the EURUSD, according to analysts at Danske bank. Consider the statement below from analysts at UOB Bank.
“Despite the relatively strong recovery, upward momentum has hardly improved. That said, there is room for EUR to edge higher but any advance is viewed as part of a higher trading range of 1.1730/1.1800.”
EURUSD technical analysis
The hourly chart shows that the EURUSD price has been in an overall bullish trend in the past few days. However, if you put a longer-term chart, you will realize that the price has been in an overall tight range. The pair is trading at 1.1771, which is above the support level of the ascending channel. The price has also moved above the 50% Fibonacci retracement level. This retracement connects the highest and lowest levels in September.
Therefore, I suspect that the price will continue rising as bulls aim for the next resistance at 1.1800, which is also along the 61.8% retracement.