FX.co ★ Trading plan for EUR/USD and GBP/USD on August 17

Dollar traded downwards since the opening of the European session. However, it rose actively near the start of the US session, in response to the July Fed minutes, which stated that the committee considers the possibility of several more rate hikes due to the resumption of inflation growth

Not long ago, many came to believe that the Fed's rate hike cycle will end, and at most there would be one more increase. Now, markets need to take into account the prospect of higher interest rates, which, in turn, opens the way for the further strengthening of dollar.

EUR/USD continues to update local lows within the correction cycle. This led to an increase in the volume of short positions, which in turn resulted in the breakdown of the support level of 1.0900. Support may be seen at 1.0850/1.0800, and along which the volume of short positions may decrease.

Although GBP/USD declined slightly, no major changes occurred. The rate remains in a sideways range, around the base of the current correction cycle. Fluctuations in the range of 1.2650/1.2800 may continue in the market for some time.