With the Fed funds rate hike probability now assigning a full 100% probability for a rate hike in December, today's FOMC meeting minutes could be a non-event. After various Fed member speeches post US elections and more importantly the Fed Chair, Janet Yellen's testimony to Congress, the meeting minutes for the November FOMC meeting will at best ascertain the rate hike views unless members explicitly highlight concerns in a particular segment of the US economy. The US dollar index closed bullish after a bearish reversal on Monday, but still no clear signs of a pullback to the rally.
EUR/USD Intra-day Analysis
EUR/USD (1.0629) closed with a doji yesterday, but prices remain stuck near the 1.0600 handle. The flat price action after the falling trend line was brokena few days ago is likely to remain flat unless there is a strong upside breakout above 1.0680. We continue to look at the possibility of a corrective rally towards 1.0900 which could see renewed selling pressure retake the currency pair. Alternately, the downside is currently supported by a fragile support at 1.0500, which if breaks could see further trend continuation.
GBP/USD Intra-dayAnalysis
GBP/USD (1.2406) continues to range within the 1.2500 and 1.2400 price levels, but the bias is increasing to the downside. On the 4-hour chart, theprice is currently bearish following the doji pattern above 1.2400. A bearish close here could signal near-term weakness which could push GBP/USD lower towards 1.2250 - 1.2224 support. To the upside, short term resistance is seen at 1.2500,and only a convincing break above this resistance could signal further gains in store.
USD/CAD Intra-day Analysis
USD/CAD (1.3439) turned bullish yesterday after the mixed retail sales figures. Price posted a strong reversal off 1.3380,and further upside could see the dollar post gains towards 1.3500. With the OPEC meeting now just a week away, USD/CAD could be under pressure. The daily chart time frame shows bearish indications that could see price eventually fall towards 1.3287. Therefore, look for resistance to be established at 1.3500 ahead of a renewed bearish momentum in USD/CAD.