EUR/USD keeps the red near 1.1270, focus on FOMC

The shared currency remains in red figures on Wednesday, prompting EUR/USD to navigate a narrow range in the 1.1260/70 band.

EUR/USD attention to FOMC minutes

The pair has faded the overnight spike to daily highs near 1.1290, retreating to the mid-1.1200s albeit gaining some pips afterwards, all within the broader leg lower after fresh 2-month highs around 1.1320 on Tuesday.

In the meantime, the greenback remains well bid ahead of the release of the FOMC minutes later in the European evening. However, market bets are tilted towards a continuation of the cautious tone from the Committee, which could undermine the ongoing recovery of the buck.

EUR/USD levels to watch

The pair is now losing 0.06% at 1.1271 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).