The focus early this morning was the publication of the minutes of the FOMC meeting which was seen to have once again injected support for the current movement of the US dollar.
Examining the details, the tone remains hawkish as previously conveyed by Fed Chairman Jerome Powell who views high interest rates still need to be maintained for a longer period.
Although the current policy will be maintained, there is also talk of the potential for interest rates to be raised if the situation calls for it.
Nevertheless, market analysts assess that there is still room for the Fed to cut interest rates at least starting in September, but the expected percentage is limited.
If examined on the chart of the EUR/USD currency pair, the price is moving away from the 1.09000 height zone that was tested on the bullish pattern displayed last week.
The price is trending down and with the reaction to the FOMC minutes, the price is seen getting closer to the RBS (resistance become support) zone of 1.08000.
A bearish price signal is visible with the price starting to fall below the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart since last Tuesday.
If the price decline occurs, investors will look at the price reaction shown at the RBS 1.08000 zone for an indication of the direction of further movement.
If it breaks down, the risk of a price fall is greater with the price target reaching around 1.07000.
On the other hand, if the price manages to make an increase again, crossing the MA50 barrier will signal for the price to resume the previous bullish pattern.
The upside will try to retest the 1.09000 resistance zone before recording the latest high towards the target at 1.10000.
