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  • US dollar recovers momentum and weakens EUR/USD further.
  • Euro among weakest currencies in Europe drops versus CHF and GBP.

The EUR/USD turned negative for the day amid a recovery of the US dollar across the board. The greenback managed to trim losses but versus the euro, rose at a fastest pace. The pair dropped to 1.1838, reaching a fresh daily low.

Earlier on Tuesday, EUR/USD climbed to test the 1.1900, twice. It failed both times and lost strength. During the American session, started to correct lower and recently spiked to the downside. Over the last minutes, it rebounded, and as of writing, it is trading 1.1850/55, modestly lower for the day.

Volatility across the board is rising. The recent decline in EUR/USD took place amid a recovery of the greenback. The DXY erased losses and is back above 93.00, up 0.06% for the day. The euro is the weakest among main European currencies on Tuesday.

Economic data from the US was ignored by market participants that are focus on the FOMC meeting. The decision of the central bank and the updated economic forecasts will be released on Wednesday.

Technical outlook

The EUR/USD is falling on Tuesday after rising during the previous four days. The very short-term outlook weakened of the euro. A consolidation below 1.1850 would expose the next support at 1.1825 and below attention would turn to 1.1800. The critical level is 1.1750, the monthly low that if broken, should clear the way to more losses.

On the upside, a close above 1.1900 would add momentum to the euro. The resistance stands at 1.1.920 followed by 1.1965.