The minutes of the FOMC meeting that were the focus of investors earlier this morning have seen the depreciation of the US dollar after the report was published.
Examining the details of the minutes, investors still did not get any indication for the timing of the measure to reduce bond purchases (tapering) by the central bank.
However, resuming trading in the Asian session on Thursday morning, the US dollar was seen to re-show a strengthening as market sentiment risked giving an advantage to the safe-haven currency.
The United States (US) stock market also gave an indication of market risk-off sentiment as major indices showed declines.
Note the price movement on the chart of the EUR/USD currency pair, after the price decline last Tuesday, the price leveled above the support zone 1.17000 awaiting the report of the FOMC meeting minutes.
Following the publication of the report, the surged price tested the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame but failed to pass it before slowing down again in the support zone of 1.17000.
Continuing trading at the start of the Asian session this morning, risk-off sentiment has pushed the price lower below the 1.17000 support zone to record the latest low for the year.
As of 9.30 local time, the price has slipped to the level around 1.16850 and is expected to continue its lower decline continuing into the following sessions.
The latest decline will lead to the level of around 1.16000 to test the focus zone which was previously the price support zone during September and October 2020 trading.
As for the bullish situation, if the price moves above the 1.17000 level again, investors will wait for a clearer signal for a bullish price movement.
The continued rise is seen to head back to the focus resistance level at 1.18000 which was tested in last weekend’s trading after the price spike.
