Following the release of FOMC Meeting Minutes, the EURUSD pair has advanced towards the 1.1878 level, after Federal Reserve policy raised deep concerns over the current low inflationary environment in the United States.
The trading sentiment surrounding the EURUSD pair today is bullish, as the euro continues to test its key monthly pivot point, at 1.1875, while the U.S dollar index sinks below its key 200-week moving average.
The euro has reached a confluence of critical resistance, facing its monthly pivot point and 61.8 Fibonacci retracement level of the recent 1.1669 swing low to the 1.2004 swing price-high, at 1.1875.
Later today the EURUSD will react to U.S inflation data, with the release of the Producer Price Index for the month of September.
Key near-term intraday technical support for the EURUSD is found at the pairs 50-day moving average, at 1.1862, and the euro’s daily pivot point, at 1.1848. Once below 1.1848, further support is found at 1.1832 and 1.1800.
Key technical resistance above the 1.1875 level is found at 1.1890, and the key 1.1910 level. Once above 1.1910, further resistance is found at the September 25th price-high, at 1.1936 and the 1.1985 level.
