The euro traded at $1.2211, down 0.19% this morning as the Fed minutes failed to signal QE3 to boost risky assets.
The common currency had nearly touched $1.23 on stimulus expectation before the Fed minutes were released yesterday. However, it fell to a two-year low following the disappointing minutes.
The euro was recovering slightly at the time of writing, just as eurozone industrial production data was just released. This showed production dropped to 2.8% in May on a year-on-year basis from a revised drop of 2.4% last month. This compares with analysts' estimates of a drop to 3.3%. ECB president Mario Draghi will be speaking in Casablanca at 1pm (London time).
EUR/USD appears to have strong support at the $1.22 level, which it has been unable to breach even with the gloomy events over the past few days. If the common currency is able to break below this level, the next level of support only comes in around the $1.18 level. The 14-day RSI of 33 shows the currency pair to be hovering close to oversold levels (a figure below 30 signifies oversold territory).