EUR/USD: Bears guarding 1.1800 barrier ahead of EZ CPI, ECB minutes

The EUR/USD pair keeps its latest bullish streak intact amid persistent broad based US dollar weakness, fuelled by yesterday’s FOMC minutes release and renewed US political jitters.

EUR/USD capped below daily pivot of 1.1740

The bulls are seen gathering pace for further upside, allowing the EUR/USD pair to consolidate yesterday's sharp recovery gains, in the wake of a non-favorable FOMC minutes induced massive USD sell-off. The US 10-year Treasury yields posted the biggest daily drop since July-end, dragging the greenback broadly lower.

The FOMC members expressed their concerns weak inflation, staying on the defensive with regard to the Fed rate hike prospects this year. However, the Fed indicated its readiness to begin reducing its $4.2 trillion balance sheet from next month.

Moreover, better-than expected Eurozone second quarter annualized growth figures also keeps the sentiment underpinned around the Euro. Eurozone Q2 flash GDP growth bettered expectations on yearly basis

Looking ahead, the major could regain 1.18 handle, should the European traders react negatively to the FOMC minutes release, which could trigger a fresh selling wave in the buck. Meanwhile, the pair could also get influenced by the Eurozone CPI report, ECB minutes and US dataflow due for release later today.

EUR/USD Technical Set-up  

According to Mohammed Isah FXTechstrategy, “resistance comes in at 1.1800 level with a cut through here opening the door for more upside towards the 1.1900 level. Further up, resistance lies at the 1.1950 level where a break will expose the 1.2000 level. Conversely, support lies at the 1.1700 level where a violation will aim at the 1.1650 level. A break of here will aim at the 1.1600 level. All in all, EURUSD faces further upside pressure.”