EUR/USD recovers to 1.1270, flat-lined ahead of FOMC minutes

After an initial dip to mid-1.1200s, the EUR/USD pair has managed to recover its lost ground and turned flat to currently trade around 1.1270-75 band, nearly unchanged from yesterday's closing. 

Earlier on Wednesday, the pair extended its retracement from post-Brexit high of 1.1323 touched in the aftermath of dismal US CPI release on Tuesday when the greenback remained under intense selling pressure on fading hopes of an eventual Fed rate-hike action in 2016. 
However, hawkish comments from New York Fed president William Dudley's comments that the Federal Reserve might still go ahead and raise interest rates in September forced traders to trim their bearish US Dollar bets. 

Markets now eagerly await for the minutes from the Federal Reserve's latest monetary meeting, due later during US trading session, which would is expected to provide fresh cues over the timing of next Fed rate-hike action and hence, should act as a key determinant of the greenback's near-term direction.

Technical levels to watch

On the downside, 1.1255 level (session low) might continue to act as immediate support. A decisive break through this immediate support, leading to weakness below 100-day SMA support near 1.1225-20 region, seems to drag the pair immediately towards 50-day SMA support near 1.1150 area. Meanwhile on the upside, 1.1300 round figure mark remains immediate hurdle, which if cleared would pave way for continuation of the pair's near-term upward trajectory towards pre-Brexit swing high resistance near 1.1400 round figure mark.