EUR/USD With a Tailwind While GBP/USD Tests 1.38-Support

The euro stabilized against the U.S. dollar Tuesday and EUR/USD saw a small rebound towards 1.1880. If the pair is able to hold above 1.18 in short-term time frames, we may see a rise towards 1.1950 and possibly even 1.20.

GBP/USD on the other side, saw a correction towards 1.38 and it will be interesting whether that support area holds. Falling below 1.38, a next lower support is seen at 1.3750.

The FOMC meeting minutes today at 19:00 UTC may spur some volatility in USD crosses but we do not expect the minutes to serve as a catalyst for big moves. The Fed’s March rate decision came and went without any significant change as monetary policy is kept on hold.