Euro started with a downtrend in the Asian session since the U.S. Federal Reserve’s latest meeting minutes indicates continued policy support and cemented hopes of a quick economic turnaround. Minutes from the latest FOMC meeting held on March 16-17 confirmed that the central bank is no rush to hike rates.

Federal Reserve officials remain cautious about the ongoing risks of the coronavirus pandemic and are committed to bolstering the economy until its recovery is more secure, minutes of the policy meeting showed.

However, Investors looked convinced that a faster US economic recovery from the pandemic will force the Fed to raise interest rates sooner than anticipation.

Only a couple of the officials cited possible financial stability risks flowing from the Fed’s current policy of maintaining its overnight benchmark lending rate near zero and buying $120 billion in bonds every month – a setting the Fed says is locked in until the economy is well on its way to being healed.

The positive outlook for the US economy remains supported by the impressive pace of coronavirus vaccinations and infrastructure spending plan of US President Joe Biden.

The positive sentiment creates speculations on the US inflation and raised doubts that the Fed will retain ultra-low interest rates for a longer period. This led to the push of US Treasury bond yields higher, which helped revive demand for the US dollar.

In other news, JP Morgan CEO Jamie Dimon said in his annual letter to his shareholders that the U.S. economy is emerging from the pandemic in strong fashion and that the economic boom could last until 2023. He said a “Goldilocks moment” is coming fast, amid sustained economic growth and non-problematic inflation.

EUR/USD 4 Hour Chart:

Support: 1.1848 (S1), 1.1828 (S2), 1.1795 (S3).

Resistance: 1.1902 (R1), 1.1935 (R2), 1.1956 (R3).

Investors are now waiting for the Fed powell speech to direct their trades, in the meantime all the catalysts are favoring the greenback. We expect a bearish trend for EUR/USD.