EUR/USD accelerates losses as US dollar gains momentum

FXStreet (Córdoba) - The US dollar picked up pace and dragged EUR/USD sharply lower during the American session, supported in part for positive US economic reports as investors gear up for the Federal Reserve decision.

However, EUR/USD accelerated the decline over the last minutes without a clear catalyst as investors adjust positions hours before the Fed verdict. The FOMC is widely expected to announce a rate hike tomorrow, for first time in nearly a decade, which has underpinned the greenback during the last months.

After being rejected by the 100-day SMA at 1.1059, EUR/USD turned south and lost nearly 150 pips, breaking through the 50-day SMA to currently trade at 1.0915, recording a 0.68% loss on the day.

EUR/USD key levels

On the downside, next support levels are seen at 1.0878 (Dec 9 low), 1.0829 (Dec 8 low) and 1.0795 (Dec 7 low). On the flip side, resistances line up at 1.1059 (Dec 15 high/100-day SMA), 1.1100 (psychological level) and 1.1139 (Oct 23 high).

-------
What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.
-------