Yesterday afternoon was quite abundant in the statements of the American central bankers. The series of speeches was opened by Neel Kashkari, a representative of the Fed from Minneapolis, resigning from commenting on the aspects related to the strategy of gradually raising interest rates. Kashkari maintains the conviction that FOMC members should lean on improving the stability of the financial system, which will end the era of institutions that are too big to fail forever. The reticence of Neel Kashkari, a representative from Minneapolis, effectively compensated for the statements of Charles Evans and Robert Kaplan. The first one is quite skeptical about the intentions of rapid interest rate hikes in 2018, which should be associated with concerns about the power of price pressure. Evans showed a greater dose of optimism, which expects an acceleration of economic growth to 2.5% among others thanks to the great condition of business partners. According to Kaplan, wage pressure and a clear conquest of capital expenditures (CAPEX) should be expected due to the newly adopted tax reform.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. After making a local low at the level of 1.1914, the price bounced back up and it is currently testing the technical resistance at the level of 1.2034. The stochastic indicator is bouncing from the oversold territory as well, so there is a good chance for a bounce continuation towards the local high at the level of 1.2090.
