EUR/USD losing the grip towards 1.0600

The single currency has abandoned the area of daily highs near 1.0650 vs. the buck and is now sending EUR/USD back to the 1.0600 neighbourhood, or daily lows.

EUR/USD cautious ahead of FOMC

The pair’s upside has struggled to advance further north of the 1.0650 area for the time being, as market participants stay cautious ahead of the upcoming FOMC meeting.

It is worth recalling that global markets have already priced in a 25 bp rate hike by the Fed tomorrow, although the focus of attention will surely sift to the ‘dots plot’ (markets already seeing 2 hikes during 2017) and the potential steps of the Committee regarding monetary policy under Trump’s administration.

Data wise in Euroland, German ZEW Survey came in mixed while EMU’s Economic Sentiment has surpassed expectations for the current month. Across the pond, the NFIB’s Business Optimism Index rose to 98.4 in November, bettering estimates and ahead of November’s Export/Import Prices.

EUR/USD levels to watch

The pair is now losing 0.24% at 1.0612 facing the next support at 1.0515 (low Nov.24) ahead of 1.0503 (2016 low Dec.5) and finally 1.0457 (2015 low Mar.16). On the other hand, a breakout of 1.0650 (high Dec.13) would target 1.0798 (high Dec.5) en route to 1.0873 (spike post-ECB Dec.8).