FXStreet (Córdoba) – The US dollar picked up pace and dragged EUR/USD sharply lower during the American session, supported in part for positive US economic reports as investors gear up for the Federal Reserve decision.
However, EUR/USD accelerated the decline over the last minutes without a clear catalyst as investors adjust positions hours before the Fed verdict. The FOMC is widely expected to announce a rate hike tomorrow, for first time in nearly a decade, which has underpinned the greenback during the last months.
After being rejected by the 100-day SMA at 1.1059, EUR/USD turned south and lost nearly 150 pips, breaking through the 50-day SMA to currently trade at 1.0915, recording a 0.68% loss on the day.
EUR/USD key levels
On the downside, next support levels are seen at 1.0878 (Dec 9 low), 1.0829 (Dec 8 low) and 1.0795 (Dec 7 low). On the flip side, resistances line up at 1.1059 (Dec 15 high/100-day SMA), 1.1100 (psychological level) and 1.1139 (Oct 23 high).
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(Market News Provided by FXstreet)