EUR/USD slammed below mid-1.0500s, Fedspeak in focus

Haresh Menghani FXStreet

After yesterday's brief pause, the EUR/USD pair resumed with its reversal move from 1.0680 level and tumbled below mid-1.0500s.

Currently trading around 1.0535 region, testing multi-day lows, the pair ran through fresh offers on Tuesday amid resurgent US Dollar buying interest against the backdrop of late Monday hawkish comments from the Philadelphia Federal Reserve Bank President Patrick Harker, who supported interest rate-hike move at the Fed's next monetary policy meeting in March. Harker's comments reinforced market expectations for an eventual Fed rate-hike move, sooner-rather-than-later, and lifted the greenback across the board.

Meanwhile, the release of flash Euro-zone PMI prints were largely ignored by market participants and failed to provide any immediate respite to the shared currency.

Furthermore, possibilities of some stops getting triggered on a sustained break below 1.0575-70 horizontal support could have also collaborated to the pair's downslide during mid-European session.

Investors attention on Tuesday would remain glued to the upcoming Fedspeak, due later during the day, ahead of the FOMC meeting minutes on Wednesday.

Technical levels to watch

A follow through selling pressure below mid-Feb. lows support near 1.0520 region has the potential to drag the pair to sub-1.0500 level ahead of 1.0455 level (Jan. 11 low). On the upside, support break point near 1.0575-70 area now seems to act as immediate resistance and would be followed by resistance near 1.0600 round figure mark. Any further up-move beyond 1.0600 handle might now be capped at 1.0630-35 region (yesterday's high).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0635

43% Bullish
57% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0659

40% Bullish
40% Bearish
20% Sideways

Bias Neutral

1 Quarter

Avg Forecast 1.0419

11% Bullish
68% Bearish
21% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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