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EUR/USD consolidates to the upside in early moves, 1.14 on sight

FXStreet (Mumbai) - The bid tone around the EUR/USD pair remains intact heading into the early European trades, having bottomed out at hourly 20-SMA near 1.1365 region, as the euro continues to benefit from the FOMC minutes-led US dollar weakness.

EUR/USD struggling hard to conquer 1.14 handle

The EUR/USD pair trades 0.13% higher at 1.1374, fighting it difficult to extend beyond H1 R2 located at 1.1379. The shared currency remains lifted versus the US dollar as we progress towards the European opening bells, as the greenback remains broadly undermined on the back of the dovish Fed minutes released last week.

The dovish Fed minutes published on Thursday triggered a fresh USD sell-off, which continues to extend into a third-day on Monday. The USD index drops -0.12% to 94.82, near multi-week lows. The Fed minutes lowered the chances of a 2015 Fed rate-hike and thus continue to weigh on the buck.

Meanwhile, the major is expected to remain supported amid a data-empty EUR calendar while volumes will also remain very light as Japanese and the US markets are closed on public holidays.

EUR/USD Technical Levels

The pair holds above all its daily major moving averages while the RSI remains above the mid-lines, which backs the case for further upmoves. Hence, to the upside, the major faces immediate resistance at 1.1400 (round number), beyond which a test of 1.1442-60 (Sept 17 & 18 Highs) would become imminent. While the immediate support is located at 1.1366/67 (hourly 20-SMA & H1 S2), a breach of the last would expose 1.1300 (psychological levels).

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