EUR/USD (current price: 1.1210)
The most traded pair also continued its decline as traders see a June rate hike by the FED as more and more likely. The FOMC Minutes stated that “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter (…) then it likely would be appropriate to increase the target range for the federal funds rate in June,” underlying the “data-dependency” of the committee. The cross closed right at the April low near 1.1220, after exiting from the short-term consolidation pattern.
Our assessment: EUR/USD still looks to be on its way to the 200-day MA near 1.10, as the momentum indicators are just reaching neutral territory despite the steep decline in recent weeks.
