EUR/USD tumbles further to 1.1040, FOMC eyed

The selling pressure around the shared currency remains unabated so far this week, with EUR/USD now posting fresh lows in the 1.1040 area.

EUR/USD attention to FOMC

The pair is retreating since Monday, breaking below the key 200-day sma and the support lines at 1.1070 (2014-2016 trend line) and 1.1060 (4-month trend line), all paving the way for further downside as the greenback remains firm ahead of the FOMC minutes due later in the NA session.

By contrast, the upside momentum in the buck seems to be taking a breather today, with the US Dollar Index easing from recent multi-month tops and always supported by rising expectations of a Fed’s rate hike by year-end.

Ahead in the session, the FOMC minutes are expected to come in on the hawkish side, while the potential timing of the next rate hike and further policy normalization will be on top of the agenda.

EUR/USD levels to watch

The pair is now losing 0.13% at 1.1040 and a break below 1.1005 (7-month support line) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24). On the other hand, the next up barrier is located at 1.1172 (200-day sma) followed by 1.1244 (resistance line off 2016 high) and finally 1.1279 (high Sep.26).