EURUSD PRE FOMC Consolidation

April 06, 2016 09:10

Today the most important event is FOMC minutes where FED will be providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates and future guidance of their economic policy. I personally expect dovish FED minutes because on last meeting chief Yellen implied that only 2 instead of 4 rate hikes would be appropriate for 2016. If the FED confirms and repeats the same outlook today,than they will probably explain it deeper so the minutes should be dovish. Currently I am ruling out April hike and I will be paying a close attention to ANY clue of next interest rate timing. But as with FED its never 100 % sure.

Technically EURUSD is consolidating after a nice move to the upside.As I have showed on previous Session Recap the EURUSD has rejected straight from 1.1330 POC zone reaching 1.1405 and that was good to fill our day with green pips before FOMC. Traders should pay attention to 1.1335 to the downside as the break below will expose 1.1300 and 1.1225. To the upside 1.1435 is the important resistance and the break above will expose 1.1450 and 1.1500. Dovish minutes should spark another rally (buying the dip or a direct bounce) in EURUSD but if the FED surprises us with a hawkish statement then I expect EURUSD to drop.

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