EUR/USD a quick rally to 1.05 post FOMC minutes and then dropped 20 pips back again

Currently, EUR/USD is trading at 1.0492, up 0.87% on the day, having posted a daily high at 1.0501 and low at 1.0390.

EUR/USD has a pop at the 1.05 handle after the FOMC minutes were released and then dropped back 20 pips to where the spike started from. The minutes did not offer anything that we did not already know while most officials call for gradual rate hikes to be appropriate while all saw upside risks to the economic forecast and expect fiscal policies to be more expansionary under Trump. 

FOMC Minutes: Policymakers generally agreed to continue to closely monitor inflation

Several members see a further rise in the dollar that may weigh on inflation. Policy members emphasized their considerable uncertainty on timing, size and composition of any further fiscal and other economic policies and they generally agreed to continue to monitor inflation, global economic and financial developments.  The Fed funds rate is pricing in the next hike to come in June 2017.

EUR/USD levels

With spot trading at 1.0493, we can see next resistance ahead at 1.0500 (Daily 20 SMA), 1.0501 (Daily High), 1.0518 (Weekly Classic PP), 1.0525 (Weekly High) and 1.0562 (Daily Classic R2). Support below can be found at 1.0491 (Yesterday's High), 1.0483 (Daily Classic R1), 1.0473 (Hourly 100 SMA), 1.0461 (YTD High) and 1.0459 (Hourly 200 SMA).