EUR/USD capped at key resistance ahead of the Fed minutes

Currently, EUR/USD is trading at 1.0475, up 0.70% on the day, having posted a daily high at 1.0492 and low at 1.0390.

EUR/USD has slid back from the session highs as profit taking ensues ahead of the FOMC minutes coming up today. The 20 dma at 1.0484 comes in the same vicinity as the highs and the recent daily low at the end of Dec offering resistance.

Data wise, we await the FOMC minutes, but from Europe, Eurozone CPI report came in at 1.1% in Dec, higher than the consensus forecast of 1.0% and 0.6% last. While, the core figures came in stronger at 0.9% versus November's 0.8%. Markets had predicted no changed in the Dec reading.

"The big threat, which will take EUR/USD to parity, despite the bearish consensus, is politics of course, but the sense that the ECB will ignore inflation data is Euro-negative," explained analysts at Societe Generale.

EUR/USD levels

Current price is 1.0476, with resistance ahead at 1.0483 (Daily Classic R1), 1.0491 (Yesterday's High), 1.0492 (Daily High), 1.0500 (Daily 20 SMA) and 1.0518 (Weekly Classic PP). Next support to the downside can be found at 1.0473 (Hourly 100 SMA), 1.0461 (YTD High), 1.0459 (Hourly 200 SMA), 1.0431 (Hourly 20 EMA) and 1.0411 (Daily Classic PP).