EUR/USD stays bid near 1.1250, session highs

Further selling pressure around the greenback is now lifting EUR/USD to test session peaks in the mid-1.1200s.

EUR/USD up on USD-selling

The pair is adding to yesterday’s recovery after briefly testing the 1.1170/65 band prior to the release of the FOMC minutes, advancing for the second consecutive week so far and trading closer to the critical resistance at 1.1300 the figure.

USD eroded the recent advance above the 97.00 handle when tracked by the US Dollar Index, after the FOMC minutes noted the Committee decided to wait for further evidence of the temporary slowdown in the economy during the first quarter, although it did suggested that further tightening should come soon.

Furthermore, FOMC members expect the Fed to start reducing its balance sheet at some point by year-end.

Nothing of note scheduled in Euroland today, whereas Initial Claims, Wholesale Inventories and the speech by FOMC’s L.Brainard (permanent voter, centrist) are all due in the US calendar.

EUR/USD levels to watch

At the moment, the pair is advancing 0.19% at 1.1240 facing the next resistance at 1.1250 (high May 25) seconded by 1.1267 (2017 high May 23) and finally 1.1300 (high Nov.9 2016). On the downside, a break below 1.1167 (low May 24) would target 1.1073 (76.4% Fibo of 1.1300-1.0339) en route to 1.1023 (20-day sma).