The Euro (EUR) rose against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.1040 ahead of the some key economic events that are scheduled later in the New York session. The technical bias remains bullish because of a Higher High and Higher Low in the recent wave on daily chart.
As of this writing, the pair is being traded around 1.1047. A hurdle may be noted near 1.1053, the 61.8% fib level ahead of 1.1126, the 50% fib level and then 1.1213, the swing high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support near 1.1000, the psychological number ahead of 1.0955, the 76.4% fib level and then 1.0807, the swing low of the last major downside dip. The technical biar will remain bullish as long as the 1.0807 support area is intact.
The Federal Reserve is due to release the minutes from the recent Federal Open Market Committee (FOMC) meeting today during the New York evening session. Investors will be eyeing the FOMC minutes very closely for clues about the increase in Fed’s benchmark interest rate. A hawkish stance regarding interest rate hike would incite strong selling pressure in the price of gold and vice versa. Not to mention, the release of FOMC minutes will follow the US Inflation News.
Considering the overall technical and fundamental outlook, selling the EURUSD around current levels appears to be a good strategy if we get a bearish pin bar or bearish engulfing candle on four-hour timeframe following the release of FOMC minutes.