- Euro unable to find support against US
Dollar,drops to lowest since November.
- US Dollar strengthens ahead of FOMC minutes.
The euro reached fresh daily lows against the US Dollar ahead of the release of the FOMC minutes. EUR/USD dropped to 1.1676, reaching a fresh 6-month low.
The pair is down a hundred pips, having the worst performance in months. Fed’s minutes could add more strength to the USD rally or could trigger a corrective rally. It depends on the views of FOMC members about the economic outlook.
Ahead of the minutes, EUR/SUD trades at the lows, after breaking a 2-day trading range. If current levels are confirmed, the outlook would continue to favor more losses.
While the US Dollar continues to be supported by rising US yields, the Euro remains under pressure on the back of Italian politics and recent Eurozone economic data (PMI and Consumer Confidence) that came in below expectations.
Short-term technical levels
If the slide continues, immediate support could be seen at 1.1660, followed by 1.1620 and 1.1575. On the upside, resistances might lie at 1.1710, 1.1730/35 (20-hour moving average) and 1.1750.