EUR/USD on the defensive, eyes 1.1375 pivot ahead of FOMC minutes

Currently, EUR/USD is trading at 1.1340, down -0.06% on the day, having posted a daily high at 1.1370 and low at 1.1313.

EUR/USD is in a better bid formation the short term sticks ahead of the FOMC minutes coming up on the turn of the hour.  Markets will be looking for clues about whether the Fed will begin the asset reduction before another rate hike. 

US: All eyes on FOMC minutes – TDS

EUR/USD has pared back the early losses after European Central Bank governing council member Benoit Coeure said that policy makers had not begun discussions on tapering QE. This came in stark contrast to when the euro gained strongly after ECB President Draghi described the European economy in positive tones, exciting traders who began to move up expectations for tightening.

For the data that has so far been released for today's session in the US has shown that May factory orders declined more than expected, while the final reading on durable goods orders showed a decline of 0.8%, matching preliminary data.

EUR/USD levels

We have choppy price action with a bearish bias and EUR/USD remains on the defensive below 1.1375 with near-term targets to the downside at 1.1315 and 1.1290 on an extension. "The market will find immediate support at the 1.1239 4 month uptrend and this guards the more important 1.1110 end of May low," argued analysts at Commerzbank. The alternative scenario above 1.1375 could have traders looking for further upside with 1.1400 and 1.1429 as near-term targets, these are the highs from mid-2016 and then the two-year resistance line is located at 1.1464.