By: DailyForex
The EUR/USD gains stopped at the resistance level 1.2080, the highest level in 3 months, before it went back to 1.2000 at the time of writing. At the beginning of Thursday trading, it was supported by the optimism for the USD after the release of the minutes of last meeting for the Federal Reserve, as they maintained the plan of 3 interest rate raise for 2018. The minutes suggested that the low inflation level in the country is transitional and that the job market strength will support facing its implications. The decision makers at the Federal Reserve agreed largely last month that the US tax reform would benefit the economy, however, they split in terms of whether the resulting growth will lead to faster rate raise this year.
Expectations are more than 98% that the Federal Reserve will increase the rates this month. Before the release of the minutes, the US Industrial ISM recorded a new record level against expectations, and the constructions spending increased strongly as well.
Technically:
The EUR/USD is enjoying a strong bullish momentum in case it is established above the psychologically important top at 1.2000. The next resistance levels will be around 1.2068 and the top at 1.2205, which are tops supporting the upward trend for the pair. On the bearish side, the nearest support levels for the pair are currently at 1.1985 and 1.1900 and 1.1845, and the overall trend for the pair is still bullish until signs of a trend shift.
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On the economic data front:
Today’s agenda will focus on the services PMI for the Eurozone. From the US, there will be a release of the non-farm employment change from ADP, unemployment claims and the US crude inventories.