EUR/USD retreats further

FXstreet.com (Córdoba) - The EUR/USD took another step lower and printed a fresh daily low during the New York session, although momentum remains weak as markets await the FOMC outcome Wednesday.

The EUR/USD slid further and fell below the 200-hour SMA toward a low of 1.3725 before recovering slightly with US data having little or no effect on the pair. "US inflation has risen, but remains low enough for the Fed to use it as an excuse not to start the taper tomorrow", said the ING Bank team. "At 1.2%YoY, US inflation is a little lower in November than consensus expectations had been predicting (1.3%), but it is at least moving higher, and away from the 1.0% area that the Fed has typically worried more about deflation than inflation".

EUR/USD technical levels

At time of writing, the EUR/USD is trading at the 1.3730 zone, recording a 0.2% loss on Tuesday. As for technical levels, immediate support lies at 1.3725 (Dec 17 & 16 lows) followed by 1.3708 (Dec 13 low) and 1.3700 (psychological level). On the flip side, resistances line up at 1.3800 (psychological level), 1.3811 (Dec 11 high) and 1.3832 (2013 high Oct 25).