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EUR/USD testing session tops near 1.1470, FOMC on sight

  • The pair is up smalls near the critical 1.1470 area.
  • The greenback attempts some consolidation around 95.80.
  • FOMC minutes will be the salient event later today.

The positive mood seems to have returned to the single currency in the middle of the week and is now pushing EUR/USD to the area of daily highs in the 1.1465/70 band.

EUR/USD looks to trade, FOMC

Spot has once again failed to surpass the critical proximity of the 100-day SMA around 1.1480 amidst some pick up in the demand for the greenback and optimistic headlines from the ongoing US-China trade talks.

In fact, market participants continue to closely follow the developments from Beijing, where officials should be wrapping up this week’s talks and continue the following week in Washington, as per the latest news.

In the data space, German trade surplus widened above estimates to €19.0 billion in November, while unemployment figures in the euro area for the same period are due later in the European morning.

Across the pond, markets’ focus will be on the publication of the FOMC minutes.

What to look for around EUR/USD

In the very near term, US-China trade negotiations will remain key for the price action in the risk-associated complex. Further out, the today’s FOMC minutes could shed more detail on the views of the Committee regarding the rate path for the next months as well as the health of the US economy.

EUR/USD levels to watch

At the moment, the pair is gaining 0.20% at 1.1463 facing the next hurdle at 1.1476 (100-day SMA) seconded by 1.1485 (high Jan.7) and finally 1.1497 (high Jan.2). On the flip side, a breakdown of 1.1309 (2019 low Jan.2) would target 1.1268 (monthly low Dec.14 2018) en route to 1.1214 (2018 low Nov.12).

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