Technical Analysis EUR/USD for November 18, 2015

The EUR/USD traded near the 1.0650 level for most of the North American trading session as investors awaited the FOMC meeting minutes from October’s Federal Reserve meeting.  FOMC minutes showed that most participants thought liftoff conditions could be met by December, and hence wanted the statement to show a December hike could be appropriate. Officials also mostly agreed that the process of removing accommodation would be gradual.  Most of the minute’s information was as expected, and traders moved into riskier assets as bond prices moved lower and the dollar gain some traction.

The currency pair made a lower high and a lower low reflecting a down trend with resistance near the 10-day moving average at 1.0744.  Support is seen near the March lows at 1.0480.  The relative strength index moved into oversold territory printing a reading of 29, which is below the oversold trigger level of 30, and could foreshadow a correction.