The greenback dropped broadly on Tuesday, which sent the EURUSD pair back above the important 1.15 handle. The single currency was trading 0.50% stronger during the London session, seen hovering around 1.1530.
The dollar fell under pressure after Trump’s interview with Reuters, where he reiterated that he is “not thrilled” by the actions of the Fed and prefers a policy of low interest rates. However, the Fed remains politically neutral and therefore the latest wave of Trump jawboning will most likely be ignored by the FOMC members, with the Fed poised to deliver two more rate hikes this year.
There are no major data on the agenda today and investors will focus on Wednesday’s FOMC Minutes form the July’s meeting, which are expected to sound hawkish again.
The jump in the EURUSD pair has brought it to the first key resistance of previous lows, which is around 1.1550. Strong selling offers will be located here. If the euro pushes above, the bearish trend would be cancelled, with the next target for bulls in the 1.17 region.
On the downside, important support is located at the psychological level of 1.15 and if the pair fails to stay above, we could see depreciation toward previous highs at 1.1430.