EUR/USD reaching for 1.24 ahead of Draghi's speech, Fed minutes

The EUR/USD is trading quietly ahead of the European market session, testing higher just beneath 1.2370.

The Euro managed to eke out a small gain on Tuesday's broad market rally following China's demure stance on international trade disputes that Chinese President Xi Jinping struck during his speech at the Boao Forum on Tuesday. Markets are hoping that China's decidedly downplayed stance on trade fairness will lead to a successful resolution of the current trade tariff spat between the US and China that has sent equities spiraling as risk aversion grips traders.

The European session ahead will be a thin but decided showing for the EUR on the economic calendar; the European Central Bank (ECB) will be posting the minutes of their Non-Monetary Policy Meeting at 07:00 GMT, followed by low-tier Retail Sales figures for Italy at 08:00 GMT. The ECB is unlikely to garner much volatility as the central bank will not be discussing monetary policy specifically, though the ECB's President, Mario Draghi, will be giving a speech at 11:00 GMT, when he will be speaking at the Generation €uro Students’ Award Ceremony, in Frankfurt.

FOMC minutes: looking for robust discussions on trade - Nomura

The US session promises a more impactful affair, with US CPI figures dropping at 12:30 GMT, with the headline Core CPI y/y figure for March expected at 2.1 percent, an increase from the previous reading of 1.8 percent. After that will be a FOMC Meeting Minutes release from the US Fed, scheduled for 18:00 GMT.

EUR/USD Levels to watch

The EUR/USD is looking for further bullish momentum to capitalize on risk-hungry markets, but as FXStreet's Chief Analyst Valeria Bednarik noted earlier, "Technically, the pair retains the positive stance gained earlier in the day(Tuesday), at least short-term, although there's a long road ahead before entering bullish territory. In the 4 hours chart, the pair settled above all of its moving averages, with the 20 SMA turning higher below the larger ones, which remain directionless and converging around 1.2320. Technical indicators in the mentioned chart have retreated modestly from overbought levels, but remain well above their mid-lines, rather reflecting the latest pullback than suggesting upward exhaustion. Renewed buying interest that takes the pair beyond the mentioned daily high, could lead to an initial test of the 1.2410 region, ahead of 1.2445, the next strong resistance area.

Support levels: 1.2330 1.2295 1.2250                                                                     

Resistance levels: 1.2375 1.2410 1.2445