EUR/USD reverses early gains as pre-Fed nerves dominate

The EUR/USD pair once again ran through fresh offers near 1.0665 resistance and dropped to a fresh session low, albeit remained comfortably above 1.0600 handle.

Currently trading around 1.0620-25 region, reemergence of greenback buying interest, in absence of any major market moving releases from Euro-zone, seems to be the only factor exerting some selling pressure around the major. Heading into the big event risk, FOMC interest-rate decision, investors seemed reluctant to carry big bet and a slightest of surprise has the potential to trigger sharp volatility across global financial markets. 

With a 25 bps rate-hike fully priced-in, market participants will be keen to know the central bank's policy outlook for 2017 from the accompanying policy statement, especially 'dot-plots'. 

In the meantime, traders would look for short-term trading opportunities from today's US economic docket that includes - monthly retail sales data and PPI print for November. 

Technical levels to watch

A fresh bout of selling pressure, leading to a break below 1.0600 handle, is likely to turn the pair vulnerable to head back towards retesting 1.0530-25 important support below which the pair is likely to break below 1.0500 psychological mark and aim towards testing March 2015 lows support near 1.0460-50 region.

On the upside, 1.0665-70 region now seems to have emerged as immediate hurdle, which if cleared now seems to lift the pair beyond 1.0700 round figure mark towards testing its next major hurdle near 1.0780 horizontal zone,  en-route 1.0800 handle.

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