Wednesday brought a series of comments from FOMC members and a report from the December meeting of the Committee, which together strengthened investors' reluctance to pay the dollar. The global investors did not learn anything new, but it was only remembered that for the sake of the sentiment in the financial markets, the Fed would calm down the discussion on the continuation of the cycle of interest rate increases and other forms of monetary tightening for some time. The Fed's goal has been camouflaged with a patient waiting for incoming data, tracking market volatility, and even theoretical admission of the interest rate reduction scenario. What the Fed will do in the course of this year (in our opinion, it will make two increases) is not important at the moment. What counts is that the investors have received a directional impulse that allowed them to break free from the fumes of uncertainty and doubt, which seized the markets at the end of last year. And the repetition of the changed position by Fed representatives will be a systematic hitting in USD. In addition, with the improvement of market sentiment and positive reports from US-China trade negotiations, the importance of USD as a safe haven is decreasing.
Let's now take a look at EUR/USD technical picture at the H4 time frame. Breaking through 1.15 is an important impulse that will generate the largest dollar supply (due to the liquidity of this pair) and might spill over to another USD cross. Moreover, the market has reversed from the level of 1.1570 after a Bearish Engulfing candlestick patten was made. Currently, the price is trading close to the level of 1.1500 which is a technical support. Please notice the overbought market conditions are indicating a further decline towards the level of 1.1471 or 1.1442.
