Trading in EUR/USD was volatile in the past week but the pair closed near highs and posted a third consecutive week of gains, once again making a notable technical break.
The Federal Reserve held its monetary policy meeting in the past week and the statement released on Wednesday had only minor changes to inflation rhetoric and a slightly more optimistic reference to the labor markets. The Fed signaled that balance sheet normalization will start ‘soon’ which was expected as Fed Chair Yellen said something similar at her testimony to Congress.
The lack of a hawkish element to the meeting minutes triggered a continuation of the bullish trend in EUR/USD, driving the pair above the 2015 high of 1.1714. The rally was met with sellers at a horizontal level that is respected on a monthly chart at 1.1767. While the pair sold off sharply on Thursday after testing the 1.1767 resistance, it recovered on Friday to close the week near the level. The weekly close marks the highest since the second week of January 2015.
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