EUR/USD close to 1.0800 ahead of FOMC

EUR/USD has given away some pips after yesterday’s strong rebound beyond the 1.0800 handle amidst some recovery in the greenback.

EUR/USD attention to US data, FOMC

The pair has quickly climbed to fresh multi-week tops around 1.0800 the figure following a sharp sell off in the greenback in response to comments by Trump’s trade advisor P.Navarro, hinting at the fact that Germany, China and Japan could be taking advantages from its devaluated currencies.

The comments have intensified the already bearish note around the buck, particularly since Trump took office in January 20, dragging the US Dollar Index to levels last traded in mid-November in the 99.50/40 band.

In addition, EUR found some extra support from higher-than-expected inflation figures in the euro area along with a positive surprise from the advanced GDP figures during the fourth quarter.

Later in session, the ADP report and the ISM Manufacturing will precede the key FOMC meeting in the US calendar.

EUR/USD levels to watch

The pair is now gaining 0.01% at 1.0798 facing the next up barrier at 1.0805 (high Feb.1) ahead of 1.0820 (50% Fibo retracement of the Nov-Jan drop and low Mar.10 2015) and then 1.0848 (50low Oct.25 2015). On the other hand, a breakdown of 1.0775 (low Feb.1) would open the door to 1.0681 (low Jan.31) and finally 1.0667 (20-day sma).