EUR/USD turns negative after hawkish Fed minutes, drops below 1.2350

• US Dollar gained momentum across the board after FOMC minutes. 
• Some Fed members saw the need for faster rate hikes despite trade fears. 

EUR/USD dropped after the release of the FOMC minutes of the latest meeting. The pair was hovering around 1.2370, slightly above the 20-hour moving average and after the release lost more than 20 pips easing daily gains. It reached a fresh daily low at 1.2348. Earlier today, peaked at 1.2395, a 2-week high. 

The minutes were seen as hawkish by many market participants and strengthened the US Dollar. The US Dollar Index erased daily losses. The greenback also recovered ground against commodity and emerging market currencies. 

According to the minutes, all members saw further tightening likely warranted, with a gradual approach. The surprise came with comments from some members who mentioned that the economic outlook implies a steeper rise in interest rates over the next years than what was previously expected. 

Technical levels 

The recent slide pushed EUR/SUD below the 20-hour MA and also under a short-term uptrend line. To the downside, support levels might be located at 1.2350, 1.2330 and 1.2300. On the upside, immediate resistance might be seen around 1.2390 and above at 1.2420 and 1.2440. On top, a long-term downtrend line stands around 1.2450/60.