EUR/USD trading sideways ahead of the FOMC meeting minutes

The Federal Open Market Committee (FOMC) is set to release minutes of its meeting held on October 30^th at 19:00 GMT on Wednesday. The U.S Federal Reserve had cut interest rates by another quarter-point on October 30^th. The third rate cut for the year 2019 was aimed at promoting leniency in monetary policy as strong U.S dollar has been hurting manufacturing and growth, as per President Trump.

Following the third-rate cut, Fed chair Jerome Powell cleared the Federal Reserve’s stance of no further change in the monetary policy unless a significant economic event pushes for it. Powell also testified before the U.S Congressmen last week and reiterated that the monetary policy can be expected to remain on pause for some time as the U.S Fed evaluates the impact of earlier rate cuts on economic growth and improvement at large.

President Trump Expresses Concerns About Strong U.S Dollar

A similar stance was echoed in Powell’s meeting with President Trump on Monday. The U.S President, however, criticized the Federal Reserve for not aiming for further leniency in the monetary policy. He expressed concerns about strong U.S dollar hurting the economy and keeping growth under pressure.

President’s support for a weaker dollar has excited the investors and analysts alike for the FOMC meeting minutes as they are expecting clues regarding when the Federal Reserve is planning to roll back the monetary policy halt. Investors are also interested in getting an insight into the Federal Reserve’s stance regarding asset purchases and funding market in the short-term.

Technical Levels To Watch In EUR/USD

Ahead of the FOMC meeting minutes, EUR/USD currency pair has been reported trading sideways. With a loss of 0.15% for the day, the pair is trading below 1.1080 level. According to the technical analysts, 1.1043 marks strong support for the bears. Dropping below the support, the pair can be expected to continue heading south with 1.0990 as the next target.

On the upside, if the pair breaks above the crucial resistance at 1.1083, it will open the way for bull rallies with 1.1150 as the next target. The contents of the FOMC meeting minutes are also likely to cast a similar impact on Cable. GBP/USD is currently trading around 1.2920 level. Strong psychological resistance is located at 1.30. On the downside, breaking below 1.2880 will hint at the bearish dominance that may pull the price as down as 1.2770.

The U.S dollar index is currently at 97.80 with a gain of around 0.06% for the day. Traders are recommended to be cautious of the imminent volatility in the index following the release of FOMC meeting minutes.