EUR/USD picks up a bid ahead of ECB minutes

• EUR/USD faded the spike to 1.1371 yesterday as Fed minutes were slightly more hawkish-than-expected. 
• The pair may pick up a strong bid in Europe if the Eurozone PMI's beat expectations alleviating recession fears. ECB minutes will likely sound dovish, but the delay in the rate hike has been priced in. 

EUR/USD is currently trading at 1.1350, representing a 0.14 percent gain on the day. 

The common currency had jumped to a high of 1.1371 in the NY session yesterday. The move to two-week highs, however, was short-lived, as the Fed minutes carried a slightly hawkish tilt of several members still believing that the most likely path in rates was still higher if the economy evolves as expected. 

As a result, EUR/USD erased gains and closed with marginal losses at 1.1336. The pair, however, picked up a bid in Asia, possibly tracking the rise in the offshore Chinese yuan to 7-month highs. 

The bid tone around the common currency will likely strengthen further if the preliminary German and Eurozone PMI indices for February beat estimates, alleviating recession fears to some extent. 

The minutes of the European Central Bank's (ECB) January meeting, also scheduled for release today, are likely to sound dovish, but will likely have a little negative impact on the EUR pairs. That the ECB will not be able to hike rates any time soon has been penciled in by markets - EUR/USD fell from 1.1514 to 1.1234 in two-weeks to Feb. 15. 

Add to that, the bullish crossover between the 5- and 10-day moving averages (MAs) and the path of least resistance appears to be on the higher side. 

Technical Levels