EUR/USD sinks to lows near 1.0750

The selling pressure has now picked up pace around the single currency, relegating EUR/USD to the area of daily lows in the mid-1.0700s.

EUR/USD weaker ahead of FOMC

Spot is coming down from multi-week tops beyond 1.0800 the figure recorded on Tuesday and earlier today, as the greenback remains on a firm footing following yesterday’s slump on Trump’s comments.

Higher-than-inflation figures during January and Q4 GDP above expectations in the euro area gave some extra support to the EUR’s upside on Tuesday, although their effects seem to have quickly fizzled out today along with a so far muted Trump’s Twitter account.

USD gathered extra traction after the ADP surprised to the upside during last month, showing the US private sector added more jobs than initially forecasted (246K act. vs. 165K exp.).

Later in the session, the Federal Reserve should keep the Fed Funds rates unchanged, although the statement is expected to reflect the uncertainty of Trump’s polices.

EUR/USD levels to watch

The pair is now losing 0.39% at 1.0755 and a breakdown of 1.0706 (38.2% Fibo of the November-January drop) would target 1.0681 (low Jan.31) en route to 1.0665 (20-day sma). On the flip side, the next hurdle lines up at 1.0814 (high Feb.1) ahead of 1.0820 (50% Fibo retracement of the Nov-Jan drop and low Mar.10 2015) and then 1.0848 (50low Oct.25 2015).