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  • The pair is adding to yesterday’s losses and challenges 1.1700.
  • The greenback stays bid following the rate hike by the Fed.
  • German flash CPI figures next of relevance in Euroland.

The European currency is extending the post-Fed leg lower and is now dragging EUR/USD to test fresh lows in sub-1.1700 levels.

EUR/USD now looks to data, Italy

Spot is extending the downside for the second session in a row on Thursday as market participants continue to digest the somewhat hawkish message from the FOMC meeting.

I addition, uncertainty around the Italian budget appears to have resurfaced, also weighing down on sentiment and lifting Italian yields.

On the USD-side, the US Dollar Index (DXY) manages to get some traction and reclaim the 94.60 area, or daily highs.

Looking ahead, several gauges of sentiment/confidence in Euroland are due later seconded by ECB’s Private Loans and M3 Money Supply, all preceding the more relevant advanced inflation figures in Germany.

Across the pond, Durable Goods Orders, Initial Claims and another revision of Q2 GDP should keep the attention on the buck later in the day.

EUR/USD levels to watch

At the moment, the pair is losing 0.29% at 1.1706 finding immediate contention at 1.1691 (low Sep.27) followed by 1.1664 (21-day SMA) and then 1.1526 (low Sep. 10). On the upside, a breakout of 1.1815 (high Sep.24) would target 1.1853 (monthly high Jun.14) en route to 1.1946 (200-day SMA).