EUR/USD a 60-pip round turn in a chop post balanced Fed minutes

EUR/USD rallied on the back of the minutes that were overall balanced on a divided Fed on when to rise rates.

EUR/USD has since moved lower on the back of yield remaining higher as markets still anticipate that a rate hike will arrive in December once the elections are out of the way, especially if Clinton wins while Trump remains as a huge uncertainty. The DXY remains strong while commodities are all off while not too much new came out of the minutes - essentially, several voters voted to raise rates soon, but there is a debate stirring in the Fed while Yellen remains on the dovish side still while the labour market remains too slack and keeping rates low will draw more into the workplace. A case for a rate hike would have to be overwhelming strong for them to move just days away from the US elections, so November is highly unlikely.

ECB may discuss QE changes but decision could be delayed until December - Reuters

EUR/USD levels

EUR/USD broke below the 1.1060 and now focus is on the eight-month support line at 1.1005 with a low today at that level. The June and July lows at 1.0952/12 are the next downside levels to key an eye out for, according to analysts at Commerzbank, adding that resistance now comes in at the 1.1105/23 August, September and October 7 th lows with further resistance coming in between the 200- and 55-day moving averages at 1.1172/98.

"Still more resistance can be seen along the 1.1253 resistance line and also at the 1.1280/85 15th and 26th of September highs. While capped there we remain negative. Above 1.1285 lies the 1.1366 August high. Only an unexpected rise above there would introduce scope to 1.1416/65, the mid-April and June highs."