EUR/USD back below 1.0500 mark ahead of EU PMIs

The EUR/USD pair's attempted recovery from 21-month lows ran through fresh offers near 1.0520 region and the pair has now weakened back below 1.0500 handle.

Currently trading around 1.0490 level, the pair remained under pressure and extended overnight sharp losses after the FOMC unanimously voted to raise the Federal-funds rate by 25 bps to between 0.50% and 0.75%. Moreover, the accompanying statement turned out to be more hawkish than expected, projecting three interest-rate increases in 2017 as compared to two rate-increases previously anticipated in September, added on to the prevalent bullish sentiment surrounding the greenback and exerting a follow through selling pressure around the major. 

Traders on Thursday now look forward to Euro-zone PMI prints for immediate respite ahead of BOE monetary policy decision. Later during NA session, US economic docket - CPI, Philly Fed Manufacturing Index and usual weekly jobless claims, might also provide some short-term trading opportunities.

Technical levels to watch

On the downside, 1.0470-65 region (multi-month lows) might continue to lend immediate support, which if broken decisively is likely to turn the pair vulnerable to break below 1.0400 round figure mark and head towards testing its next support 1.0335-30 region. On the upside, any recovery attempt above 1.0520-30 immediate resistance now seems to confront strong hurdle near 1.0550 region above which a fresh bout of short-covering might assist the pair to move back towards 1.0600 handle.