EUR/USD probing lows near 1.1560 ahead of FOMC minutes

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.

Pablo Piovano FXStreet

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).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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