EUR/USD rises above 1.1200 after FOMC minutes

The US dollar dropped modestly across the board immediately after the release of the FOMC minutes. According to the document, most Fed officials saw “tightening likely appropriate soon”. 

FOMC minutes: Fed policymakers agreed that details of balance sheet plan should be announced soon

EUR/USD rose above 1.1200 and printed a fresh daily high a 1.1211. The pair is holding near the high as the US dollar drops in the market weakened after the minutes. Treasuries rallied after the Fed’s document pushing yields to the downside. Gold rose $5 to fresh highs near $1260. 

The euro is now trimming part of yesterday’s losses and a consolidation on top of 1.1220 could open the doors for a test of yesterday’s highs. EUR/USD is attempting to resume moves to the upside, that has been the case since May 12. 

Technical levels 

To the upside resistance levels might be located at 1.1225, 1.1250 and 1.1265/70 (May 23 high).  On the flip side, support could be seen now at 1.1200, 1.1160 (May 22 low) and 1.1120.