EUR/USD slides to 1-1/2 month lows near 1.0500 handle ahead of German IFO
|Having failed to build on early tepid recovery bounce to mid-1.0500s, the EUR/USD pair ran through fresh offers and plunged to the lowest level since Jan. 11.
Currently trading around 1.0510-05 region, the pair remained under selling pressure amid ongoing political uncertainty in the Euro-zone. Investors refrained from buying the shared currency on fears of France moving out of the Euro-zone in case of a victory for France’s leader of the far-right National Front Le Pen in the upcoming French Presidential election.
Meanwhile, Tuesday's comments from various Fed official kept hopes alive of a Fed rate-hike action in March and continues to underpin the greenback. In fact, the key US Dollar Index has now risen to the highest level since Jan. 12 (101.60 region) and is further collaborating to the pair's offered tone for third session in the previous four.
On the economic data front, the German IFO business climate, due for release in a short while from now, would be looked upon for some immediate respite. Later during NY session, the Fed monetary policy meeting minutes might turn out to be one of the key factors determining the pair's near-term trajectory.
Technical levels to watch
Momentum below 1.0500 handle could further get extended towards 1.0480 level support, which if broken would open room for continuation of the pair’s depreciating move further towards 1.0400 handle, with some intermediate support near mid-1.0400s.
On the upside, recovery back above 1.0525-30 area now seems to confront resistance near 1.0575-80 region above which the pair is likely to aim towards reclaiming 1.0600 handle.
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