EUR/USD has retreated. Tuesday, the Euro having been affected by disappointing European PMIs, while the Dollar benefited from its side. a much better-than-expected US services PMI, and stronger-than-expected new home sales.
However, losses remained modest as forex traders expected even more important events at; From today.
Indeed, the EUR/USD will have to deal with the publication of the IFO index of the German business climate at; 10 a.m., then at a speech by Christine Lagarde, President of the ECB, to 7:45 p.m., just before the publication of the Minutes of the last Fed meeting.
>>See the results of key EUR/USD stats as soon as they are released on the Investing.com Economic Calendar
But these Minutes could have a big impact on expectations for the next Fed meeting scheduled for June 14. This Wednesday morning, the Investing.com Fed Rate Barometer shows a probability of more than 70% that the Fed decides on a pause.
If the minutes of the last Fed meeting which will be published tonight calls into question the prospect of a pause in favor of the option of another 25 basis point rate hike, expect to see more a rise in the Dollar, and therefore to a fall in EUR/USD.
Technical thresholds at; monitor on EUR/USD
From a graphical point of view, it will be recalled that the EUR/USD has been dismissed below its 100-day moving average yesterday, after timidly attempting to to go back over the day before.
On the other hand, the pair of currency found support at 1.0760 area remains immediate support this morning. A break below the threshold would expose the next support zone around 1.07.
Lower down, little support is identifiable before the zone formed by the 200-day MA at the top. 1.0475, this year's low at 1.0480, and the key threshold from 1.05.
À On the upside, the 100-day MA becomes the first significant resistance, before the 50-day MA, which currently merges with the psychological threshold of 1.09.
EUR/USD Alert: FOMC Minutes represent a key risk for Euro Dollar
