EUR/USD bounces off lows, looks to regain 1.1700

The selling pressure around the shared currency has picked up extra pace today, sending EUR/USD to fresh 3-week lows around 1.1660 just to rebound soon afterwards.

EUR/USD offered on ECB minutes

Spot gathered extra downside traction after the ECB published its minutes of the July meeting. Sellers have quickly stepped in after members of the Council expressed some concerns over the likelihood of potential market overshooting in FX, dragging the pair to fresh multi-week lows in the 1.1660 area.

In addition, the ECB minutes added that members see inflation in the region staying lower than forecasted due to energy prices and exchange rates.

In the meantime, the greenback is expected to stay in the limelight as initial claims, the Philly Fed manufacturing gauge, industrial production and capacity utilization are all due later in the session.

Furthermore, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

EUR/USD levels to watch

At the moment, the pair is retreating 0.59% at 1.1696 facing the immediate support at 1.1662 (low Aug.17) seconded by 1.1611 (low Jul.26) and finally 1.1577 (4-month up trend). On the other hand, a breakout of 1.1790 (high Aug.17) would target 1.1846 (high Aug.11) en route to 1.1894 (high Aug.3).