EUR/USD fails to sustain recovery, turns back south

FXStreet (Córdoba) - EUR/USD is oscillating near daily lows after the latest recovery attempt faltered at the 1.1255 area.

EUR/USD found support at 1.1204 and rose back to the 1.1255 zone as the greenback lost some ground following US housing data. However, the recovery lost momentum and the pair turned back south, falling quickly to around 1.1210. At time of writing, EUR/USD is trading at 1.1215, recording a 0.58% loss on the day.

The euro remains vulnerable as lack of progress in Greek talks dominates headlines while investors refrain from taking big positions ahead of the FOMC rate decision on Wednesday.

FOMC decision eyed

While expectations of a rate hike have been pushed to September/December, investors will be paying attention to Fed’s language for clues not only about the timing of the hike but the amount and how the Fed plans to proceed.

EUR/USD technical levels

In terms of technical levels. immediate supports are seen at 1.1204/00 (Jun 16 low/psychological level), 1.1188 (Jun 15 low) and 1.1150 (Jun 12 low). On the upside, resistances could be found at 1.1300 (psychological level), 1.1329 (Jun 16 high) and 1.1385 (Jun 10 low).

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