EUR/USD struggles to regain 1.1750 ahead of EZ GDP, Fed minutes

The EUR/USD pair is seen trading around a flat-line below 1.1750 in early Europe, extending its Asian consolidation box, as investors eagerly await the Eurozone flash GDP release for fresh impetus.

EUR/USD hovers around daily pivot of 1.1740

The main currency pair remains better bid, but further upside appears to lack follow-through, as markets turn cautious and refrain from placing any directional bets on EUR/USD ahead of the Eurozone Q2 flash GDP report and FOMC minutes release due on the cards later today.

Forex Today: Asia sees tight ranges ahead of UK jobs, EZ GDP & Fed minutes

Markets are expecting the second revision to the Eurozone economic growth to remain unchanged at 0.6% q/q & 2.1% y/y, as seen in the first reading. Hence, the growth figures may not have a significant impact on the Euro, but the Fed July monetary policy minutes is expected to set the tone for the greenback in the coming days , especially after yesterday’s solid US retail sales data bolstered Dec Fed rate hike expectations.

Ahead of the FOMC minutes, the spot could also take cues from the US housing starts and building permits data, while sentiment on the global equities will also key for the EUR markets.

EUR/USD Technical Set-up  

Haresh Menghani, Analyst at FXStreet explains: “Any immediate up-move might now confront immediate resistance at 20-day SMA, near mid-1.1700s, above which the pair is likely to aim back towards the 1.1800 handle. On the flip side, any immediate dips might continue to find fresh buying interest near the 1.1700-1.1690 region, which if broken decisively is likely to accelerate the corrective slide towards 61.8% Fibonacci retracement level support near 1.1640 level before the pair eventually breaks below the 1.1600 handle and head towards testing its next support near mid-1.1500s.”