27.07.201710:43 Forex Analysis & Reviews: The demand for euro and pound will continue

The US dollar lost a few of its positions against the euro, the British pound and some of the commodity currencies.

Yesterday, the Fed left unchanged between 1.00% and 1.25%.

The investors' attention was focused on the scheduled date of the reduction in the balance sheet. However, the Fed said that the aforementioned reduction would begin soon, without indicating a specific time frame, which apparently led to the return of demand for risky assets.

With regards to the labor market, the committee believes that the current situation will continue to improve. Economic activity is growing at a moderate pace on the back of rising household and company spending.

The Fed also mentioned that short-term risks for the economy are balanced and closely monitored for inflation. In the medium term, it is expected that inflation will be about 2.0%.

Based on the technical picture of the EURUSD pair, the euro purchases were expected to lead to the renewal of massive resistance levels that I paid attention to yesterday. As of this writing, a series of attempt to test the resistance 1.1760 may lead to the formation of a new long position on the trading instrument, testing the 1.1800 and the release to a new annual maximum near 1.1845.

In case of a downward correction in the pair, the euro should return to the purchase in favor of the 1.1700 support area, which is recently quite an important resistance level.

After the data on reserves from the US Department of Energy grew yesterday, prices of oil continued its upward correction. According to a report from the Energy Information Administration last week, the US oil inventories fell by 7.2 million barrels, while economists expected a reduction of only 2.6 million barrels.

Such data was also supported by commodity currencies.

The Australian dollar has updated it next monthly upper limit paired with the US dollar. Support for the trade instrument was provided by China's data on profits, which rose in June by 19% compared last year. Despite this, some leading analysts have argued for the limited growth potential of the Australian dollar due to the measures that the Reserve Bank of Australia can take. Everyone knows that the RBA tends to accelerate economic growth and inflation, but the strong exchange rate which grew recently by more than 5%, is very detrimental to these plans.