EUR/USD reverses a dip to sub-1.1700 level, FOMC minutes eyed
| • Political uncertainty/disappointing EZ PMIs kept exerting downward pressure.
• Surging USD adds to the bearish sentiment and collaborates to the downfall.
• Investors' focus remains glued to the release of latest FOMC meeting minutes.
The EUR/USD pair reversed a dip to sub-1.1700 level and quickly recovered around 25-30 pips from over 6-month lows.
Against the backdrop of Italian political uncertainty, today's disappointing EZ PMIs exerted some additional downward pressure on the shared currency. This coupled with a fresh wave of US Dollar upsurge further aggravated the bearish slide and dragged the pair below the 1.1700 handle for the first time since mid-November 2017.
The selling pressure now seems to have abated, at least for the time being, as the USD bulls now seemed taking some breather ahead of today's key event risk - the release of latest FOMC meeting minutes, due later during the NY trading session.
Except for an unexpected dovish tilt, the minutes seem unlikely to hinder the ongoing bullish run and hence, a follow-through weakness, led by some fresh technical selling below the 1.1700 handle, now looks a distinct possibility.
Technical levels to watch
Valeria Bednarik, FXStreet's own American Chief Analyst writes: “The 1.1660 is a strong static support level and the next bearish target. A break below it seems unlikely ahead of Fed's Minutes, but if the dollar continues getting market's favor, it could extend its decline later down to 1.1620.”
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