USD declined after FOMC minutes
6/1/2016 10:20:34 AM
The USD declined across the board after the statement of the FOMC minutes from the historic December meeting. EUR/USD gained momentum and growth from 1.0755, breaking above 1.0771 and peaked at 1.0797. Along with the minutes, the decision to increase rates in December was a close call for some of the FOMC voters. The document gave no clues about the next rate hike, noting that the normalization process will be gradual. “Generally, taking into account domestic and foreign developments, members saw the risks to the stance for both economic activity and the labor market as balanced, and they expected that, with gradual adjustments in the position of monetary policy, economic activity would most likely keep on expanding at a moderate pace”, the minutes specified. The pair released to 1.0713, area placed around yesterday’s lows, forming a probable double bottom in the short term. At this time, with the pair above Asian session highs, the possible aim of the formation is around 1.0830, as the distance between 1.0710/20 and 1.0770 is 60/70 pips. EUR/USD should hold above 1.0760/70 in order to keep the strong bias complete; if it drops below, it would cancel the development.