EUR/USD sticks to 1.0500 post-IFO

The selling pressure around the single currency stays unchanged on Wednesday, now dragging EUR/USD to fresh lows in the 1.0500 neighbourhood.

EUR/USD attention to FOMC

The continuation of the USD-rally has put the pair under heavy pressure as of late, breaking below the key support at 1.0520 (January 15) and opening the door for a deeper retracement.

Today’s German IFO figures have surprised markets to the upside, with Business Climate, Current Assessment and Expectations all coming in above forecasts for the current month.

However, spot keeps the cautious-to-bearish note in light of rising bets on a potential Fed move at the March meeting, USD-supportive comments from Fed speakers and the upcoming release of the FOMC minutes.

EUR/USD levels to watch

At the moment the pair is losing 0.25% at 1.0511 and a breach of 1.0498 (low Feb.22) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3). On the upside, the next resistance lines up at 1.0593 (20-day sma) followed by 1.0682 (high Feb.16) and finally 1.0706 (38.2% Fibo of the November-January drop).