EUR/USD drops back towards 1.1250, FOMC minutes eyed

After a volatile session witnessed last Tuesday, the EUR/USD pair takes a breather and consolidates the previous heavy gains just below 1.13 handle, as focus now shifts towards the FOMC meeting minutes due on the cards later today.

EUR/USD rejected at 1.1290

Currently, EUR/USD trades -0.11% lower at fresh daily lows of 1.1266, having faced rejection just below 1.13 barrier. The main currency pair remains extends the retreat from fresh two-month tops reached at 1.322 a day before, and now beaks lower from the Asian consolidation box as we progress towards early European trading.

The bid tone behind the US dollar picked-up pace last hour, prompting further correction in the EUR/USD pair towards NY lows struck at 1.1246.  The USD index jumps +0.21% to fresh session highs at 94.95, extending the recovery from two-month lows of 94.38.

The major edges lower as dust settles over the US economic data aftermath, with the upcoming FOMC minutes release expected to hog the limelight amid a data-quiet economic calendar today.

EUR/USD Technical Levels               

In terms of technicals, the pair finds the immediate resistance 1.1290/1.1300 (daily high/ round number). A break beyond the last, doors will open for a test of 1.1322 (2-month highs). On the flip side, the immediate support is placed at 1.1246 (NY low) below which 1.1211/04 (5 & 100-DMA) could be tested.