EUR/USD hits fresh multi-week lows near 1.0550 region

The EUR/USD pair ran through fresh offers near 1.0585 region and has now slipped into negative territory for the fifth consecutive session. 

The pair came under some renewed selling pressure during early European session on Wednesday amid growing expectations of faster Fed rate-hike actions in 2017. Tuesday's hawkish comments from the Fed Chair Janet Yellen, during the semiannual testimony before the Senate Banking Committee on Tuesday, has put March Fed rate-hike move back on the table and has been a key factor weighing on the major, dragging it to fresh over one-month lows near 1.0550 area.

Meanwhile, investors also seemed reluctant to buy the shared currency, amid growing concerns about France’s Presidential election and Greek bailout talks, eventually failing to provide any immediate respite / lend support to the major. 

In absence of any relevant fundamental drivers from the Euro-zone economic docket, the US Dollar price dynamics would remain an exclusive driver of the pair's movement on Wednesday. Hence, focus would remain on the US macro releases - CPI print and monthly retail sales, scheduled for release later during NA session. 

Technical levels to watch

A decisive break below 1.0550 level is likely to accelerate the slide towards 1.0515 horizontal support before the pair eventually breaks below 1.0500 psychological mark and head towards testing its next support near 1.0460-55 region. 

On the flip side, any recovery attempt now seems to confront resistance at 50-day SMA near 1.0600 region. Even if the pair manages to clear this immediate hurdle, any further upside might now be capped at 1.0625-30 strong horizontal resistance.