EUR/USD down for a 5th day in a row, awaits ECB minutes, US data

Dhwani Mehta FXStreet

The EUR/USD pair faced rejection once again just ahead of 1.1350 levels, now consolidating the latest move lower, as attention turns towards the ECB monetary policy account for the next direction.

EUR/USD back below 1.1350

The main currency pair extends its range trade above 1.13 handle into a third day today, as the recovery momentum in the US dollar versus its main rivals loses pace amid a lack of surprises offered by the FOMC minutes, leaving USD index in a tight range around 96 handle.

Moreover, persisting risk-off market environment amid lingering North Korea tensions, keep the investors on the edge and hence, they refrain from creating fresh positions across the fx space.

However, a minor pullback in EUR/USD in the day ahead cannot be ruled, as the upcoming ECB minutes release could provide something to cheer for the hawks. Also, the US dollar could resume the recent declines should the US dataflow disappoint, especially in light of yesterday’s downbeat factory orders.

The US docket offers a string of economic releases including the ADP jobs, trade balance, jobless claims and ISM services. Besides, FOMC member Powell’s speech will also hog the limelight.

EUR/USD Technical Levels

To the upside, resistance levels might lie at 1.1355 (stiff resistances), 1.1368 (Jul 5 high) and 1.1390 (Jun 28 high). On the flip side, support could be seen at 1.1313 (Jul 5 low), 1.1290 (Jun 28 low) and 1.1265 (May 23 high).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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