EUR/USD hovers near year-to-date lows ahead of FOMC minutes

EUR/USD came under renewed selling pressure on Wednesday and hit its lowest level in 11 months amid broad USD strength.

The US dollar resumed the advance, boosted by better-than-expected durable goods orders and confidence data, while investors await the FOMC meeting minutes due at 19:00 GMT.

Expectations of a rate hike in December and faster pace of tightening next year have been underpinning the greenback over the last weeks, following Trump’s victory in presidential elections.

EUR/USD bottomed out at 1.0525 during the New York session, although it has managed to recover some ground afterwards. At time of writing, EUR/USD is trading at 1.0560, still 0.61% below its opening price.

EUR/USD technical levels

As for technical levels, next supports seen at 1.0525 (2016 low Nov 23), 1.0500 (Dec 3 2015 low/psychological level) and 1.0470 (Mar 16 2015 low).  On the flip side, short-term resistances could be found at 1.0565 (Nov 23 high), 1.0590 (10-day SMA) and 1.0648 (Nov 21 high).

To learn more about this topic, check our video analysis:

EUR-USD from Tip TV Productions on Vimeo.