After Scrutiny of FOMC Minutes, EUR/USD Drops to $1.0900 Level


 The minutes of the FOMC meeting became the focus when it was published early this morning as investors watched the effect of movements on the US dollar currency.

Examining the minutes report, the Federal Reserve (Fed) is seen to continue to maintain the current monetary policy and interest rates are not expected to be raised at the December meeting.

However, members of the meeting are still considering measures to tighten monetary policy if the situation is urgent.

The US dollar is seen to have slightly recovered from its previous decline to strengthen slightly against several major currencies such as the Euro after the minutes were published.

On the chart of the EUR/USD currency pair, a bearish pattern has begun to appear in yesterday's Tuesday trading that has reversed direction from the gains earlier in the week.

After reaching the high level of 1.09600, the price dropped back until it continued after the FOMC minutes were published with the price reaching around 1.09000.

Investors are wary of early signals of a change in trend following the price starting to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/USD chart.

If the US dollar recovers, the price can be pushed lower again to target a return to the concentration level at 1.08000.

However, if the price jumps back past the MA50 barrier, the previous bullish price trend will continue.

A move higher is seen to aim to reach the 1.10000 level and test that important resistance zone.

US economic data will be watched in the New York session later tonight which is expected to also affect the US dollar currency.