EUR/USD better bid near 1.1820 on easing Catalan fears

The EUR/USD pair sticks to minor bids above 1.18 handle, after a minor dip seen below the last in the Asian trades, as investors gear up for the Spanish emergency meeting and FOMC minutes due later on Wednesday.

EUR/USD: Eyes on 50-DMA at 1.1859?

The spot extended its three-day rebound and refreshed two-week tops at 1.1827 earlier today, as the Euro received further boost from easing Catalan crisis, after Catalonia’s President Carles Puigdemont left doors open for last minute negotiations, however, Puigdemont and other regional politicians did sign a document declaring Catalonia's independence from Spain.  

Meanwhile, the renewed weakness seen in the US dollar on the back of dovish comments from the Dallas Fed Chief Kaplan, while doubts over Trump’s tax reforms also continued to exert downward pressure on the buck.

Looking ahead, focus remains on the Spanish Council of Ministers’ emergency meeting due later today, while the FOMC Sept meeting minutes will also grab a lot of attention for fresh direction on the pair.

EUR/USD Technical View

Jim Langlands offers preferred strategy for EUR/USD: “The neckline of the head/shoulder is now at 1.1870 and we can go to that level, but do not want to head any higher or there will be strong dollar liquidation which would see the Euro head towards 1.1900/1.2000. The downside today looks underpinned at around 1.1780/60. Overall, range trade may be the plan and then go with the flow after the FOMC Minutes or sell a rally to 1.1870 but with a tight SL, at around 1.1900.”