EUR/USD challenges 1.0500 ahead of Trump’s presser

The European currency stays under pressure on Wednesday, with EUR/USD coming down to threat the 1.0500 key support ahead of the opening bell in Wall St.

EUR/USD weaker on USD buying

Spot shed over a cent since recent weekly tops above the key barrier at 1.0600 the figure, although sellers have so far failed to break below the 1.0500 support on a sustainable fashion.

Later in the session, the pair will remain under scrutiny via the buck’s price action in light of the press conference by president-elect Donald Trump, with the main focus on the potential fiscal stimulus, deregulating issues and growth measures.

On that regard, FX Strategists at TD Securities noted “…If Trump focuses on the growth agenda (tax reform and deregulation) while steering away from talk of a border tax, conflicts of interest and foreign affairs, risk markets are likely to react positively…”.

Further releases on the US docket will see the weekly report on crude oil inventories by the EIA.

EUR/USD levels to watch

The pair is now retreating 0.45% at 1.0508 and a breakdown of 1.0495 (low Jan.11) would target 1.0474 (20-day sma) en route to 1.0387 (low Jan.4). On the flip side, the immediate hurdle aligns at 1.0627 (high Jan.10) followed by 1.0654 (spike Dec.30) and finally 1.0658 (55-day sma).

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.