EUR/USD bounces-back to test 1.1360 ahead of FOMC minutes

• Bulls supported by dollar weakness amid Fed’s dovishness and trade hopes.

• Technical set up points to further bullish bias, 1.1400 back on sight ahead of FOMC minutes

The EUR bulls regained poise in the European session, as the EUR/USD pair now extends its bullish momentum into a fourth day today, flirting with eight-day tops of 1.1358 ahead of the key FOMC January meeting minutes release. 

FOMC Minutes Preview January 29-30 Meeting: The pause that refreshes

The FOMC meeting minutes is likely to trigger a fresh round of US dollar selling across the board should the minutes reveal a strong consensus among the FOMC on the need to change the pace or halt balance sheet normalization/ rate hikes.

Meanwhile, the greenback is also likely to remain on the back foot amid increased hope of trade resolution between the US and China. This should offer fresh impetus to the EUR bulls in order to drive the rates back above the 1.14 handle.

However, the upside could lose momentum should the German and Eurozone flash manufacturing PMIs due tomorrow show an unexpected drop and add to the mounting concerns over dwindling Eurozone economic growth.  

All in all, the pair remains at the mercy of the USD dynamics heading towards the US opening bell in a few hours.

EUR/USD Technical Levels