EUR/USD turns higher for fifth straight session, eyeing 1.16 handle ahead of FOMC minutes

   •  The USD recovery attempt quickly runs out of steam amid weaker US bond yields.
   •  Further gains are likely to be limited ahead of the release of FOMC meeting minutes.

The EUR/USD pair quickly reversed a dip to mid-1.1500s and has now moved into positive territory for the fifth consecutive session.

After an initial uptick, the US Dollar met with some fresh supply and was seen as the only factor behind the pair's latest leg of a sudden pickup over the past couple of hours. Against the backdrop of the US President Donald Trump's critical comments on the Fed's policy tightening, sliding US Treasury bond yields further added to the already weaker sentiment surrounding the buck.

Apart from some renewed USD selling, the uptick lacked any obvious fundamental catalyst, though bulls now seemed to make a fresh attempt towards conquering the 1.1600 handle. Any strong up-move, however, seems unlikely as traders are likely to refrain from placing any aggressive bets ahead of today's key event risk. 

The minutes from the latest FOMC monetary policy meeting would be looked upon to reinforce September rate hike expectation and might eventually provide some immediate respite for the USD bulls. In the meantime, the release of July existing home sales data from the US might provide some short-term trading opportunities during the early North-American session.

Technical levels to watch

The 1.1600-10 region (50-day SMA) might continue to act as an immediate resistance, above which the pair is likely to aim towards challenging its next major hurdle near the 1.1675-80 zone. On the flip side, the 1.1555-50 area now seems to protect the immediate downside, which if broken might turn the pair vulnerable to head back towards retest the key 1.1500 psychological mark.