- The pair met string resistance at the 1.1600 handle.
- The greenback stays depressed on Trump, risk-on trade.
- FOMC minutes will be the salient event later in the day.
The upbeat sentiment in the risk-associated space remains well and sound so far this week, pushing EUR/USD higher although meeting strong resistance in the 1.1600 neighbourhood.
EUR/USD looks to Trump, FOMC, risk
The pair is looking to add gains for the sixth session in a row on Wednesday, briefly clinching the 1.1600 neighbourhood late on Tuesday although losing some upside traction afterwards.
US political jitters hit the greenback after Trump’s former campaign chair P.Manafort and his lawyer M.Cohen implicated President Trump in a conspiracy to influence an election. The news forced the US Dollar Index (DXY) to shed further ground and boosted spot to the 1.1600 area, or fresh multi-day peaks.
Looking ahead, the recent upside in spot will surely be put to the test in light of the publication of the FOMC minutes later in the European evening. Further data will come from the US housing sector and the release of July’s Pending Home Sales.
EUR/USD levels to watch
At the moment, the pair is losing 0.05% at 1.1564 and a breakdown of 1.1546 (21-day SMA) would target 1.1447 (10-day SMA) en route to 1.1299 (2018 low Aug.15). On the other hand, the next hurdle aligns at 1.1600 (high Aug.21) followed by 1.1629 (high Aug.8) and finally 1.1745 (high Jul.31).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.