EUR/USD has failed to stage a convincing rebound early Thursday.
Hawkish tone in FOMC’s March meeting minutes lifted US yields late Wednesday.
Investors await ECB’s Monetary Policy Meeting Accounts and Fedspeak.
EUR/USD has extended its weekly slide on Wednesday and ended up closing the fifth straight trading day in negative territory. The pair managed to stage a technical correction during the Asian trading hours on Thursday but struggled to gather bullish momentum. Although the technical picture points to oversold conditions, it’s too early to count out further losses.
The minutes of the FOMC’s March meeting showed late Wednesday that many participants noted that they would have preferred a 50 basis point (bps) hike at that meeting. Additionally, the publication confirmed that the balance sheet reduction would start after the May meeting. With the immediate market reaction, the benchmark 10-year US Treasury bond yield advanced to its strongest level in nearly three years and helped the greenback outperform its rivals.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the four-hour chart stays below 30, suggesting that the pair remains oversold in the near term. The descending trend line coming from late March, however, stays intact and sellers are likely to remain in control until the pair steadies above that line.
On the downside, 1.0870 (static level) aligns as interim support ahead of 1.0850 (static level) and 1.0800 (psychological level).
Resistances are located at 1.0920 (static level, 20-period SMA), 1.0950 (former support, static level) and 1.1000 (psychological level).
EUR/USD recovers above 1.0900 ECB accounts.EUR/USD has edged higher and turned positive on the day above 1.0900 in the European trading hours. The accounts of the ECB’s March policy meeting revealed that a large number of members held the view that the current high level of inflation and its persistence called for immediate further steps towards policy normalisation.
GBP/USD under modest bearish pressure below 1.3100.GBP/USD is having a difficult time gaining traction on Thursday and trading below 1.3100. The greenback holds its ground on hawkish FOMC Minutes ahead of Fedspeak and mid-tier data releases.
Gold remains locked in range around $1,925, awaits fresh impetus.Gold price remains driven by the Fed sentiment, especially after the hawkish FOMC minutes pointed to aggressive tightening this year. The US dollar resumes its previous uptrend, in light of the Fed’s tightening expectations, which fuelled risk-off trading in global stocks.