FOMC minutes are the main focus of the market
Hello, dear colleagues!
The major currency pair traded on Forex has shown an uptrend for the second day in a row. The day hasn't been over yet, however, it is busy and full of significant events. The key event will be the release of FOMC minutes. Moreover, a big block of US macroeconomic statistics will be published before the FOMC minutes release. The today's data is provided in the economic calendar, so I will not list it in the analysis. As for yesterday's US producer price index reports, they were better than expected. Therefore, it is clear that they are not relevant for the market. To put it another way, the better-than-expected rise in producer prices was not favorable for the US dollar. I think that it was mainly caused by the technical picture of EUR/USD, which should be analyzed now.
Daily
According to the daily chart, on February 14 the pair broke out of the Ichimoku cloud and closed under its lower boundary. However, the candlestick still has a significant shadow. I believe that it was a sign of the further rise of the EUR/USD pair. Notably, the blue Kijun line of the Ichimoku indicator is of key significance as it triggered the pair's rise. Moreover, the level of 1.1300 with yesterday's trading lows played a major role for the market participants. Consequently, the pair closed Tuesday's session around the middle of the Ichimoku cloud at 1.1357. Currently, as a result of the continued rally, euro bulls prepare to break the red Tenkan line, as well as the strong technical level at 1.1386. Besides, the upside players will also have to overcome the first pullback Fibo level of 23.6 on the downside grid at 1.2266-1.1122. As shown on the chart, the previous two attempts failed, after some time the pair returned to the Fibo level of 23.6. However, if euro bulls manage to rise above the Tenkan line, 1.1386 and the Fibo level of 23.6, they still have problems. Besides, both opposing sides face difficulties. According to the chart, bulls in the single currency will have to take the price up from the Ichimoku cloud and then test the 89 black exponential moving average for a break, which is traded at 1.1411.
H1
As for specific trading recommendations, buying is given top priority. It is quite attractive after the pullback to resistance level of 1.1368. Besides, the highs of the last two days were indicated there. If the market rebounds to the broken level of 1.1368 after consolidation of more than three candles in a row, it will be a good chance to buy. As for selling, it is advisable to await definite candlestick signals around 1.1390-1.1411, and then it is possible to make a decision to open short positions. However, notably, FOMC minutes will be the main focus of the market today.
Good luck!