FXStreet (Mumbai) – EUR/USD snapped previous rally and fell back into losses in early Asia, as the US dollar fought back lost footing and remained well bid with the key FOMC meeting in spotlight this week.
EUR/USD hovers around 5-DMA
Currently, the EUR/USD pair loses -0.15% and trades at 1.0977, having bounced-off lows struck at hourly 50-SMA located at 1.0967. The main currency pair came under renewed selling pressure at the start of the week, as the FOMC policy announcement grabs attention now, making the Fed/ ECB divergent monetary policy outlooks more prominent. The Fed is on track to raise rates in almost a decade on Wednesday while the ECB policymakers still seem ready to roll out further stimulus next year.
Moreover, the US dollar also remains stronger across the board, despite heavy selling seen in Asian stocks, as market continue to cheer last Friday’s upbeat US retail sales and PPI data. Looking ahead, the upcoming trading calendar remains data-quiet with only the Eurozone industrial production on the cards while all eyes will remain on the ECB Chief Draghi, who is expected to speak at Prometeia’s conference, in Italy.
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EUR/USD Technical Levels
The pair keeps losses, with the immediate support seen at 1.0967 (1h 50-SMA/ daily low), below which 1.0938/35 (1h 100-SMA/ 10-DMA) could be tested. On the flip side, the immediate resistance is seen at 1.1000 (round number). A break beyond which doors will open for a test of 1.1033 (Dec 11 High).
(Market News Provided by FXstreet)