EUR/USD fades the spike to 1.1760, back around 1.1700

EUR/USD looks quite volatile during the European morning, now quickly leaving behind the brief bullish attempt to the 1.1760 area and returning to the vicinity of yesterday’s lows near 1.1690.

EUR/USD weaker on headlines, USD-buying

Spot retreated from tops in response to fresh headlines from news agency Reuters citing that President Mario Draghi will not announce any changes to the current monetary conditions at the upcoming Jackson Hole Symposium, disappointing market expectations.

In addition, a bout of buying pressure in the greenback lifted the US Dollar Index (DXY) to once again test the critical 94.00 neighbourhood, adding to the pair’s knee jerk.

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 losing 0.21% at 1.1709 facing the next support at 1.1688 (low Aug.15) seconded by 1.1611 (low Jul.26) and finally 1.1565 (4-month up trend). On the other hand, a breakout of 1.1781 (10-day sma) would target 1.1846 (high Aug.11) en route to 1.1894 (high Aug.3).