EUR/USD: Will it hold 1.1100 ahead of ECB minutes?

The corrective slide in EUR/USD is seen gaining momentum in the European session, knocking-off the rate to fresh daily lows of 1.1107.

EUR/USD losing sight of 1.12 handle?

Having failed several attempts to regain 1.1150 levels, the spot ran into fresh offers, despite prevalent risk-off environment, as markets take profits off the table ahead of the ECB meeting minutes due later this session.

Publication of the accounts of the monetary policy meeting of the Governing Council held on 26-27 April 2017 “will be watched closely for any hints around the sequencing of the ECB’s eventual exit policy, and exactly what it needs to see before changing its forward guidance,” Analysts at TDS noted.

Moreover, fresh recovery attempts seen in the US dollar against its major peers also collaborated to the latest leg down in spot, as markets shrug-off hawkish comments from ECB policymaker Vasiliauskas and Bundesbank Chief Weidmann. Meanwhile, latest developments on the Trump-Russia ties also appear to be ignored by markets.

Looking ahead, EUR/USD is likely to be driven by the USD dynamics ahead of the ECB policy accounts and US datasets. Besides, speeches from the ECB President Draghi and FOMC member Mester will hog the limelight in the NA session.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes: “the 4 hours chart shows that technical indicators have partially corrected extreme overbought readings before turning flat, whilst the 20 SMA continued advancing below the current level, now around 1.1060. The daily low was set at 1.1121, with a break below favoring a downward correction towards 1.1060/80, where buying interest will likely re-surge. Beyond the mentioned daily high, the pair has scope to advance up to 1.1210 first, en route to a major long term resistance at 1.1260.”