EUR/USD tests highs near 1.1760 ahead of FOMC

The single currency is recovering part of Tuesday’s pullback and is now lifting EUR/USD to the area of 1.1750/60, or daily tops.

EUR/USD now looks to EMU data, FOMC

After another test of the now relevant support in the 1.1690/80 band, spot managed to regain attention and advance to the current levels, as the greenback has deflated from recent multi-day tops above the 94.00 handle when tracked by the US Dollar Index (DXY).

In the meantime, the pair appears consolidative following the drop from fresh cycle tops above 1.1900 the figure recorded earlier in the month, always on the back of a moderate recovery of the buck, some profit taking and rising speculations over the likeliness of a dovish message from ECB’s Draghi at the next meeting and at the Jackson Hole Symposium.

Ahead in the session, advanced Q2 GDP figures are due in the euro area, while building permits and housing starts are next on tap in across the pond.

In addition, the pair should stay under pressure in light of the release of the FOMC minutes during the European evening, with markets expecting the Committee to shed more light on the Fed’s plans to start reducing its balance sheet as well as prospects of further tightening.

EUR/USD levels to watch

At the moment, the pair is advancing 0.18% at 1.1755 and a breakout of 1.1781 (10-day sma) would target 1.1846 (high Aug.11) en route to 1.1894 (high Aug.3). On the downside, the immediate support aligns at 1.1688 (low Aug.15) seconded by 1.1611 (low Jul.26) and finally 1.1565 (4-month up trend).