Forex traders wait for the potential trade deal between the U.S. and the EU as August 1 deadline looms.

The US dollar continues to see a bit of selling overall, but it is trying to fight back a little in the early hours of Wednesday, as the markets are trying to determine where the Federal Reserve is heading over the next few months.

The Euro managed to met target at 1.1760-65 today. As we see over the Intraday chart, the market is still holding an uptrend wave while prices face the first support around the 1.1600-15 zone, which could maintain the advance toward 1.1830 and 1.1880.

A $550B Japan investment pact and Fed tension lift DXY. Key levels form on GBP/USD and EUR/USD as Thursday's PMI data draws near.

There is potential for Euro (EUR) to rise above 1.1765 against US Dollar (USD); overbought conditions suggest it might not be able to hold above this level. In the longer run, price action indicates further EUR strength, likely toward 1.1795, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The EUR/USD pair is trading lower on Wednesday, giving away some gains following a 1.3% rally over the last three days. Investors' concerns about the lack of progress in trade negotiations between the United States (US) and the European Union (EU), combined with a somewhat stronger US Dollar (USD), are keeping the common currency on the back foot.