The dollar firmed after the July 9 FOMC minutes flagged core price pressures as a continuing concern, with the Dollar Index holding at $100.85. GBP/USD trades near $1.3418 and EUR/USD near $1.1440, both neutral to bullish on short-term charts while policy divergence between the Fed, the ECB, and the Bank of England shapes the next move.
The dollar drew support from the FOMC minutes released on July 9, which described core price pressures as still being a concern. According to FXEmpire analyst Arslan Ali, the minutes covered the Federal Reserve's discussions on inflation, unemployment, and policy setting. The euro and the pound both traded against a backdrop of divergent central bank paths.
The Dollar Index held at $100.85 after bouncing off the daily 0.618 Fibonacci level at $100.31, which followed the break above the $97.67 swing low. The gauge is respecting its 50 EMA at $100.09 while producing higher highs, with RSI hovering around the 55 range.
The next 0.618 target projection sits at $103.09, a level the analyst says is likely to be tested in the coming weeks. The index remains bullish above $100.31, trading within an ascending channel of higher highs and higher lows.
Sterling tells a similar story. GBP/USD traded at $1.3418 on a 2-hour chart, testing a descending trendline near $1.338 after rejection from the moving average at $1.337, with RSI around 65. Support sits in the $1.325 to $1.331 zone, and the pair is neutral to bullish above the trendline.
That reading echoes a separate DailyForex analysis, which noted the pair broke out above $1.3400 and could test $1.3500 next.
The euro held its ground too. EUR/USD traded at $1.1440, defending its 50 EMA at $1.1423 after rejection from the moving average at $1.162, with RSI near 61. Resistance runs from $1.155 to $1.162. The pair reads neutral to bullish above the 50 EMA but remains bearish on the long-term time frame.
Sources: FXEmpire, DailyForex
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