On Wednesday, the 22nd of August, the event calendar is light in important data releases. It will be another day without significant macroeconomic publications during the European session. In the afternoon we will get information on the US real estate market, and in the evening, there will be the publication of minutes from the last FOMC meeting.
EUR/USD analysis for 22/08/2018:
The largest financial institutions do not expect anything significant after today's publication of FOMC Meeting Minutes. Members of the Committee rather agree that the economy is growing as expected. Barclays believes that the emphasis of the message will be on a strong increase in consumption and employment, which is partly a result of the strong influence of a more lenient fiscal policy. The message regarding a gradual increase in interest rates will probably be maintained as only this year there were two rate hikes, currently, they are at the level of 2% after the June increase. Economists are expecting two more hikes this year. The FED rhetoric should change in the near future as the members of the Committee must begin to think about the gradual slowdown of the current tightening of rates.
Let's now take a look at the EUR/USD technical picture at the H4 time frame before the FED Meeting Minutes data are published. The market bounced from the technical support at the level of 1/1506 and broke through the 61% Fibo at 1.1575 with a local high at the level of 1.1599. The next target for bulls is located at the level of 1.1630, but the market conditions remain overbought, so a short-term pull-back might occur anytime now. The momentum is still strong and supports the bullish case.
