EUR/USD trims gains, 1.1280 closer

The common currency is extending the rebound from daily lows in the mid-1.1200s vs. the greenback, now lifting EUR/USD to the 1.1275/80 band.

EUR/USD focus on FOMC

Spot remains on a firm footing so far this week despite the ongoing marginal losses, although the recent bullish attempt has run out of steam in the 1.1340/50 band, where sits the 61.8% retracement of the May-June descent.

Absent releases in Euroland today, the focus of attention will stay on the USD and the FOMC minutes, to be released later in the European evening. Market expectations are tilted towards a somewhat dovish statement reinforcing the Committee’s ‘wait-and-see’ stance.

EUR/USD levels to watch

The pair is now losing 0.04% at 1.1273 and a break below 1.1179 (38.2% Fibo of the May-June down move) would open the door to 1.1123 (20-day sma) and then 1.1093 (200-day sma). On the other hand, the next resistance is located at 1.1306 (base of the 8-month rising channel) followed by 1.1346 (61.8% Fibo of the May-June down move) and finally 1.1434 (high Jun.24).