EUR/USD: Upside attempts remain capped by 1.1480 ahead of Fed minutes

• Supported amid better German data and risk-on action, as US-China trade optimism underpins.
• 100-DMA near 1.1480 – a tough nut to crack, Fed minutes could trigger a break above it

The recovery in the EUR/USD pair continues to face stiff resistance at the 100-DMA placed near 1.1480 region, as the bulls await the FOMC minutes for the next push higher.

FOMC minutes to disappoint the hawks again?

The spot has entered a phase of upside consolidation, as markets remain in a wait and see mode ahead of the crucial minutes of the December Fed meeting that could offer fresh hints on the Fed rate pause amid US economic slowdown risks.

A dovish FOMC minutes is already factored in by the markets, especially after last week’s dovish comments by the Fed Chair Powell. However, a more dovish tone could trigger a fresh round of selling in the US dollar that could send the EUR/USD pair through the 100-DMA barrier en route the 1.15 handle and beyond.

On the EUR-side of the equation, upbeat German trade figures combined with higher European equities on US-China trade talks optimism continue to underpin the sentiment around the common-currency, as the data docket remains light for today.

EUR/USD Technical Levels