EUR/USD falls to test 1.0600

EUR/USD weakened during the American session and recently reached a fresh low at 1.0603. The pair remains under pressure trading near the lows as the US dollar gains momentum in the market, particularly against the Euro, the Swiss franc and the Yen. 

Traders are getting ready for tomorrow’s FOMC decision. Market consensus point to an increase of 25bp. The statement, staff macroeconomic projection and Yellen’s press conference will be watched closely, for clues about how monetary policy will be run after Wednesday. 

FOMC meeting: it's not about the rate hike, is about hints

EUR/USD back below 1.0630

The recent slid push the price below the 1.0630 area that a few days ago was a key resistance. It was working now as a support today. Now the pair is testing the 1.0600 handle and below here the next support area could be seen at 1.0570 (Mar 10 low). 

To the upside, the euro has been unable to break above the 20-hour moving average (currently at 1.0645) and recently the 1.0650 area offered resistance. If the euro rises above it could remove some of the short-term bearish pressure. 

From Mondays highs EUR/USD has fallen 100 pips, making an important reversal so far, after being rejected from above 1.0700.