EUR/USD corrects lower towards 1.1500 as USD stages comeback

• Risk-off action lifts the USD demand, knocks-off EUR/USD lower.
• All eyes on ECB minutes, Fed Chair Powell’s speech for further impetus.

The EUR/USD pair reached three-month tops at 1.1571 and from there embarked upon a corrective move lower, as the bulls look to test the 1.1500 level amid resurgent US dollar demand across the board.  

Focus on ECB minutes

The spot quickly eroded 50-pips and now consolidates near the daily lows of 1.1520, as the USD bulls moved past the dovish FOMC minutes and jumped back onto the bids amid widespread risk-aversion, spurred by the waning optimism over the US-China trade talks and Fed pause risks.

Also, markets turned nervous heading into the release of the ECB December monetary policy meeting minutes that could underscore the European economic growth concerns, scaling back the odds of a 2019 ECB rate hike.

Also, of note remains the speeches due on the cards by the Federal Reserve (Fed) officials later today, with the key focus likely to be on the Fed Chair Powell’s speech, which could stir another leg lower in the buck.

EUR/USD Technical Levels