Traders are focused towards the upcoming FOMC minutes. After the disheartening US NFP report, the upcoming minutes could set a little dovish tone for the dollar and this is what is being priced.
The euro is strong against the dollar – at least for now, but we maintain our view that the divergence will become more apparent and inflated as we march towards the timetable of the U.S. rate hike.
Although, the economic data released for Germany, which is the economic engine of the Eurozone, was much below the expectation today and it unquestionably means that Draghi is going to have a difficult time when he will address the growth issue.
Nonetheless, traders are not factoring any other element today and plainly focused towards the upcoming FOMC minutes.
The supper is at 1.1150 and the resistance is 1.1410. The RSI remain strong and trading the direction of the price.