EUR/USD pulls away from daily lows on USD weakness

After spiking down to a new daily low at 1.0635, the EUR/USD pair took back most of its daily losses as the greenback started to lose strength following the FOMC minutes. At the moment, the pair is down 0.04% at 1.0667.

Although the immediate reaction carried the US Dollar Index up to 100.90, the bullish momentum quickly faded away as the FOMC's willingness to start shrinking the balance sheet later in 2017 was assessed as a dovish move. According to materials released with the FOMC statement, officials stuck to a median forecast for two more rate increases in 2017. As of writing, the DXY is at 100.42, unchanged compared to yesterday's closing level.

• FOMC minutes: Fed participants 'generally preferred' to change reinvestment of both treasury and mortgage-backed securities
• CME Group FedWatch: Market expectations for a June rate hike at 62.7%

With the minutes out of the way, the markets' focus now shifts to Friday's NFP report, which is expected to be a strong reading amid today's ADP report. The private sector employment in the United States increased by 263,000 jobs from February to March according to the March ADP National Employment Report. 

Technical levels to consider

1.0630 (100-DMA) remains as a strong short-term support for the pair. A break below that level could open the door to 1.0600 (psychological level/Mar. 14 low) and 1.0525 (Mar. 9 low). On the flip side, technical resistances for the pair are aligned at 1.0700 (psychological level), 1.0740 (20-DMA) and finally 1.0830 (200-DMA).