EUR/USD recovers to 1.1070, focus shifts to FOMC minutes

The EUR/USD pair has managed to recover from 1.1035 region and is currently trading around 1.1065, still below session peak level of 1.1076 reached during early European trading session.

The pair remained well offered and is seen struggling to extend its recovery momentum to move back into positive territory as the Brexit-led uncertain environment continues to fuel global risk-aversion sentiment and driving investors towards traditional safe-haven currencies - like the US Dollar and the Japanese Yen. 

Next in focus would the some important releases from the US economic calendar that includes - Trade Balance data, ISM non-manufacturing PMI ahead of the FOMC June meeting minutes, which would drive sentiment surrounding the EUR/USD major.

However, major focus would remain on one of the most keenly watched economic indicator, US monthly jobs report, slated for release on Friday, which is known for generating substantial volatility in the FX market.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the 4 hours chart for the EUR/USD pair presents a negative stance, as the price is now developing below its 20 SMA, whilst the technical indicators consolidate within bearish territory, lacking clear directional strength. Nevertheless a break below the mentioned daily low, should lead to a continued decline towards the 1.0960/80 region, whilst renewed selling interest around this last could see the pair retesting 1.0910, the post-Brexit low."

"The immediate resistance is 1.1100, with a recovery above it opening doors for an upward extension towards the 1.1140/60 price zone."