EUR/USD testing lows near 1.1130/20, FOMC eyed

The shared currency is losing further ground vs. its American peer today, with EUR/USD coming down to test daily lows in the 1.1130/20 band.

EUR/USD breaks below 200-day sma

The pair has rapidly come under renewed selling pressure after announcements by the BoJ at today’s meeting have boosted the demand for the greenback in detriment of the safe haven JPY.

Spot has broken below the critical 200-day sma at 1.1150 today, opening the door for a deeper pullback ahead of the key FOMC meeting due later in the NA session.

Market participants expect the Committee to leave its monetary stance unchanged at today’s meeting, although investors will closely follow the subsequent press conference by Chair J.Yellen in order to find clues on the potential moves by the Fed in the next months.

EUR/USD levels to watch

The pair is now down 0.13% at 1.1136 and a breakdown of 1.1121 (low Aug.31) en would target 1.1043 (low Aug.5) en route to 1.0950 (low Jul.25). On the flip side, the immediate resistance is located at 1.1216 (high Sep.20) followed by 1.1283 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).