EUR/USD advances to highs near 1.1230

The single currency is now extending its rebound from session lows in the 1.1200 neighbourhood vs. the dollar, pushing EUR/USD back to the 1.1230 region.

EUR/USD attention to the Fed

Spot has managed to revert the initial drop to the 1.1190 zone and has now recovered 1.1200 and above as the sentiment around the greenback ha deflated following the opening bell in Euroland.

EUR is recovering part of yesterday’s deep pullback as risk aversion now seems to be taking a breather and German Bund yields keep recovering from recent lows.

Data wise in the euro region, EMU’s trade balance figures are due, while the FOMC meeting will grab all the attention later in the NA session. Market bets for a rate hike today are close to zero, although investors will look for any clues on the potential timing of the next rate hike as well as any changes in the ‘dots plot’.

EUR/USD levels to watch

The pair is now advancing 0.18% at 1.1227 and a break above 1.1313 (55-day sma) would target 1.1417 (high Jun.8) en route to 1.1448 (high May 11). On the other hand, the immediate support aligns at 1.1190 (low Jun.14) followed by 1.1161 (up trend from March low) and then 1.1096 (low May 30).