EUR/USD rebounds modestly after FOMC minutes, trades above 1.1800

• EUR/USD touched its lowest level since early April below 1.1800 on Wednesday.
• FOMC Minutes showed that investors remain cautious regarding the economic outlook.
• US Dollar Index erased large portion of its daily gains.

The EUR/USD pair dropped to its lowest level in three months at 1.1782 on Wednesday but managed to stage a rebound in the late American session. As of writing, the pair was trading at 1.1810, where it was still down 0.1% on a daily basis.

DXY retreats from multi-month highs

The USD's market valuation remains the primary driver of EUR/USD's movements. Earlier in the day, the US Dollar Index reached its highest level since early April at 92.84 and caused EUR/USD to extend its daily slide.

However, the FOMC's June meeting minutes showed that some policymakers emphasized that the Fed should stay patient in announcing changes to its asset purchases amid the uncertainty surrounding the economic recovery.

"For several participants, this heightened uncertainty regarding the evolution of the economy also implied significant uncertainty about the appropriate path of the federal funds rate," the statement read. 

Following this publication, the USD started to lose its strength and helped EUR/USD retrace its daily decline. Currently, the US Dollar Index is clinging to small daily gains near 92.60.

Technical levels to watch for