EUR/USD stayed above 1.0461 low last week and turned into sideways consolidation. Initial bias remains neutral this week first. We’d expect upside to be limited by 1.1096 resistance and bring down trend resumption. Below 1.0461 will extend recent down trend to next fibonacci level at 1.0283. Nonetheless, decisive break of 1.1096 will indicate near term reversal and bring stronger rebound.
This neutral bias was activated after dovish comments from the FOMC on Wednesday about hopes for hiking rates will be data dependent which will be based on the Labor sector, Inflation and Wage growth says Fed Chair Yellen. Even though 15 out of 17 officials speculate there would be a rate hike by September, Fed Chair Yellen said patience should be exercised.
Later this week investors would taking a close look at the USD CPI and Core CPI to determine the future of the greenback in regards to rate hike.