The EUR/USD pair was seen building on to Tuesday's reversal move from 4-week high and is now approaching the lower end of weekly trading range.
Currently trading around 1.0515-20 band, a fresh bout of greenback buying interest, with the key US Dollar Index accelerating the up-move and flirting with daily tops, has been the key factor contributing to the pair's sharp slide in the past hour so.
Moreover, traders also seemed to readjust their positions ahead of the much awaited news conference from the US President-elect Donald Trump, which could reignite US Dollar's post-election strong rally and trigger a fresh leg of weakness for the major.
Investors would be looking for additional clarity over Trump's plans for the economy and specific details of the proposed fiscal stimulus measures in order to gauge its impact on the US economic growth and inflation, which would eventually be key determinants of the Fed's monetary policy stance in 2017 and have significant impact on the pair's near-term trajectory.
Technical levels to watch
On a sustained break below 1.0500 psychological mark, the pair is likely to accelerate the slide back towards 1.0460-55 region, en-route 1.0400 round figure mark. On the upside, 1.0550 region now seems to have emerged as immediate resistance, which if cleared might assist the pair back towards 1.0600 handle. Any further up-move beyond 1.0600 handle might continue to confront resistance near 1.0620 region and only a decisive move above this strong hurdle would negate any near-term bearish bias surrounding the major.