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).