EUR/USD creeps higher and tests 1.1620, FOMC eyed

• The pair keeps the rally intact beyond the 1.1600 handle.
• The US Dollar Index stays weak, breaches 95.00.
• The FOMC minutes, Existing Home Sales coming up next.

The offered tone around the greenback is now gathering further traction and is lifting EUR/USD to fresh lows in the 1.1620 area.

EUR/USD now looks to FOMC, Trump

The pair is extending the rebound from last week’s fresh cycle lows in sub-1.1300 levels, regaining over 3 cents and approaching the critical 1.1630 region, all on the back of the renewed optimism surrounding the risk-associated complex.

Furthermore, the robust correction higher in spot comes along a persistent selling pressure around the buck, intensified after the recent headlines from the US political scenario where President Trump returns to the centre stage.

Moving forward, investors will closely follow the release of the FOMC minutes later today, looking for any hints regarding extra tightening by the Fed in Q4. It is worth recalling that consensus among market participants sees the Fed raising rates in September and December.

EUR/USD levels to watch

At the moment, the pair is gaining 0.29% at 1.1604 facing the next hurdle at 1.1623 (high Aug.22) seconded by 1.1629 (high Aug.8) and finally 1.1745 (high Jul.31). On the other hand, a break below 1.1546 (21-day SMA) would target 1.1447 (10-day SMA) en route to 1.1299 (2018 low Aug.15).