EUR/USD eased lower on Wednesday after FOMC Meeting Minutes miss the mark

FXStreet
Updated May 23, 2024 06:41
Mitrade

■EUR/USD declined on post-FOMC Greenback bid.

■Odds of a September rate cut are getting a second look from investors.

■EU & US PMIS in the barrel for Thursday.


EUR/USD knocked lower on Wednesday after the Federal Reserve’s (Fed) latest Meeting Minutes revealed the Federal Open Market Committee (FOMC) are grimly determined to wait for more proof inflation will ease to 2%, sending risk appetite lower as rate-cut-hungry investors keep hoping for dovish signs from the US central bank.


While the FOMC’s latest Meeting Minutes didn’t rule out a September rate cut directly, investors are growing nervous that the Fed will not be able to find enough confirming data that inflation is making definitive progress to the Fed’s 2% annual inflation target. Odds of a September quarter-point rate cut have eased to 60% according to the CME’s FedWatch Tool.


On Thursday, pan-European Purchasing Managers Index (PMI) data is expected to recover. The EU’s Manufacturing PMI in May is expected to climb to 46.2 from 45.7, while the Services PMI is expected to tick upwards slightly to 53.5 from 53.3.


US PMI figures will follow during Thursday’s US market session, with both the Manufacturing and Services PMIs expected to hold steady at 50.0 and 51.3, respectively.


EUR/USD technical outlook


EUR/USD has drifted below the 200-hour Exponential Moving Average (EMA) at 1.0834, and the Fiber is battling to keep afloat of the 1.0820 level. The pair has eased back after a failed bull run at the 1.0900 handle.


Daily candles are inching towards the 200-day EMA at 1.0802, and EUR/USD has closed in the red for three of the last four straight trading days. Despite a near-term bearish pullback, the pair is still up from the last major swing low into 1.0600 in mid-April.


EUR/USD hourly chart



EUR/USD daily chart



EUR/USD


Overview
Today last price 1.0825
Today Daily Change -0.0029
Today Daily Change % -0.27
Today daily open 1.0854
 
Trends
Daily SMA20 1.0774
Daily SMA50 1.078
Daily SMA100 1.0817
Daily SMA200 1.0789
 
Levels
Previous Daily High 1.0875
Previous Daily Low 1.0843
Previous Weekly High 1.0895
Previous Weekly Low 1.0766
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0855
Daily Fibonacci 61.8% 1.0862
Daily Pivot Point S1 1.0839
Daily Pivot Point S2 1.0825
Daily Pivot Point S3 1.0807
Daily Pivot Point R1 1.0871
Daily Pivot Point R2 1.0889
Daily Pivot Point R3 1.0903

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
EUR/GBP Price Analysis: Piercing Line candlestick pattern signals short-term reversal after lowsEUR/GBP has sold-off steeply since breaking out of a range-bound consolidation it was trading in for most of the start of the year.
Author  FXStreet
EUR/GBP has sold-off steeply since breaking out of a range-bound consolidation it was trading in for most of the start of the year.
placeholder
UBS still looks for BOJ hike in OcotberInvesting.com - The Bank of Japan surprised many by delaying the start of its bond buying, so-called quantitative tightening, at its policy meeting earlier Friday, but UBS still looks for an interest rate hike in October.
Author  Investing.com
Investing.com - The Bank of Japan surprised many by delaying the start of its bond buying, so-called quantitative tightening, at its policy meeting earlier Friday, but UBS still looks for an interest rate hike in October.
placeholder
EUR/USD consolidates around 1.0700, just above one-and-a-half-month low touched on FridayThe EUR/USD pair kicks off the new week on a subdued note and consolidates its recent heavy losses to the lowest level since early May, around the 1.0670-1.0665 region touched on Friday.
Author  FXStreet
The EUR/USD pair kicks off the new week on a subdued note and consolidates its recent heavy losses to the lowest level since early May, around the 1.0670-1.0665 region touched on Friday.
placeholder
EUR/USD weakens as French election uncertainty, Fed’s hawkish narrative weighEUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
Author  FXStreet
EUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
placeholder
GBP/JPY retreats below 200.00 despite BoJ postponing taper tantrum plansThe GBP/JPY pair falls back below the psychological support of 200.00 to 199.50 in Friday’s European session after posting a fresh multi-year high of 201.62.
Author  FXStreet
The GBP/JPY pair falls back below the psychological support of 200.00 to 199.50 in Friday’s European session after posting a fresh multi-year high of 201.62.