EURUSD Capped by 1.1750 ahead of tonight’s FOMC minutes.
FOMC minutes are going to be closely watched by market participants today at 19.00 BST, since June meeting resulted in a surprise for traders and investors. US Dollar strengthened and the volatility increased in other USD currency crosses and some other markets like Gold, Crude Oil and also Us Equity Indices, Dow Jones, Nasdaq and S&P 500. Last month, Federal Reserve decided to opt for four interest rate hikes this year instead of three estimated previously, which was seen as Hawkish and therefore Bullish for USD currency. In addition, the Fed decided that since 2019 onward there will be a press conference following each meeting while macroeconomic projections will be still offered on a quarterly basis.
EURUSD price action appears to be downtrending in End of Day and also 4 Hourly time frames. Shorter term intraday timeframes like 1 Hourly and 15 Minutes are rallying higher potentially pointing to the double bottom reversal price pattern forming which could be confirmed by the breakout above the initial upside resistance at 1.1750 level. That level also relates to 50 DMA, falling resistance trendline in 4Hourly and End of Day timeframes, Horizontal resistance and also 23.6% Fib retracement from swing high in End of Day timeframe at 1.2520 (Feb ‘18) to current swing low at 1.1535 (May’18).
Key level to watch is at 1.1750, Price action appears to be Bearish intraday below pointing to the initial downside support at 1.1660 -1.1635 zone. Confirmed loss of these support levels could open up the way for the retest of additional downside supports at 1.1600 followed by 1.1550 and 1.1500.
Alternatively if the initial support at 1.1660-1.1635 holds a confirmed breakout above 1.1750 resistance level would negate the bearish outlook targeting additional upside resistances at 1.1800 followed by 1.1850 -1.1900.