Euro appears well supported by the 1.0900 region so far

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• Euro reverses part of the recent weakness vs.\xa0US Dollar.
• Stocks in Europe open Wednesday’s session on the defensive.
• EUR/USD picks up pace and surpasses the 1.0930 level.
• The USD Index (DXY) comes under pressure and disputes 103.00.
• EMU flash GDP figures matched estimates in Q2.
• FOMC Minutes, housing sector data are due later in the US docket.

The Euro (EUR) has managed to steady itself against the US Dollar (USD), leading to a recovery in EUR/USD, which surpassed the 1.0930 level after the opening bell in the euro area on Wednesday.

This recent rebound in the pair can be attributed to renewed selling pressure on the Greenback, causing a corresponding reaction in the USD Index (DXY), which retreated toward\xa0the 103.00 neighbourhood. This movement in the index is occurring simultaneously with a slight decrease in US yields across various maturities.

Taking a broader perspective in terms of monetary policy, there haven\'t been any significant alterations. Investors are maintaining their anticipation that the Federal Reserve will maintain its current interest rates throughout the rest of the year. Conversely, the European Central Bank (ECB) is currently contending with internal disagreements within its Council regarding the continuation of its tightening measures after the summer period.

On the domestic front,\xa0another anticipated revision of the EMU GDP Growth Rate for the second quarter showed the economy is expected to have expanded 0.3% QoQ and 0.6% YoY, while Industrial Production in the bloc expanded 0.5% in June from a month earluer and contracted 1.2% over the last twelve months.

Turning attention to the United States\' data landscape, the regular weekly MBA Mortgage Applications report is scheduled to be released first, followed by Building Permits and Housing Starts figures. Subsequently, Industrial Production statistics will be disclosed prior to the release of the significant FOMC Minutes.

Daily digest market movers: Euro now looks at the FOMC Minutes

• The EUR regains some breathing space vs. the USD.
• Concerns around the Chinese economy appear unabated.
• Inflationary pressures lose traction in the UK in July.
• Investors see BoE\'s rates peaking at 6.0% following UK CPI.
• House Price Index in China contracted 0.1% YoY in July.
• The RBNZ kept its rate unchanged at 5.5% earlier on Wednesday.
• The FOMC Minutes take centre stage later in the NA session.

Technical Analysis: Euro should meet initial barrier at 1.1064

EUR/USD so far has managed\xa0to put further distance from the August low at 1.0874 (August 14) on Wednesday, regaining the 1.0900 barrier and above amidst some fresh selling bias in the US Dollar.

In case the ongoing rebound gathers some serious traction, EUR/USD is then expected to meet initial hurdle at the August high at 1.1064 (August 10) prior to the weekly high at 1.1149 (July 27). If the pair clears the latter, it could alleviate some of the downward pressure and potentially test the 2023 peak of 1.1275 (July 18). Once this region is surpassed, significant resistance levels become less prominent until the 2022 high at 1.1495 (February 10), which is closely followed by the round level of 1.1500.

On the flip side, If the pair slips back below the August low of 1.0874 (August 14), it could indicate a potential downward movement towards the July low of 1.0833 (July 6) ahead of the significant 200-day SMA at 1.0784, and eventually the May low of 1.0635 (May 31). Deeper down, there are additional support levels at the March low of 1.0516 (March 15) and the 2023 low at 1.0481 (January 6).

Furthermore, the positive outlook for the EUR/USD pair remains valid as long as it remains above the important 200-day SMA.