Since the beginning of the week the EUR/USD has been sliding to downwards and in the early European session today hit a six week low at 1.0495. Finally we witnessed some revival right after the FOMC minutes release. As it was expected the US central bank voted to keep rates unchanged, although many FED officials see a rate hike „fairly soon” if the economy remains on track.
Following the FOMC minutes release the EUR/USD pair surged towards previous highs and the current market price is 1.0572.
The four-hour chart is showing that the price is now flirting with 23.6 % Fibonacci retracement of latest decline and where now the bearish 20-day SMA is located. RSI and Stochastic have recovered from oversold region and have turned to north, but yet are below the mid-lines. The psychological mark at 1.0600 remains key resistance and in case bulls succeed to advance though it, next target is seen at 1.0620 (38.2% Fibonacci retracement of same decline). Looking to downwards first support is placed at 1.0520 (February 15th low) and lower at 1.0495 (the daily low).
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