EUR/USD slides into negative territory ahead of US releases

The greenback regained its lost ground, with the EUR/USD pair failing to hold early recovery gains and drop to a fresh session low ahead of Wall-Street opening. 

Currently trading around 1.0610 region, spot came under renewed selling pressure and reversed from three-day tops at 1.0658 touched during European session. Renewed greenback buying interest has been the sole factor driving the pair lower. In fact, the overall US Dollar Index recovered from early corrective slide and is now flirting with session peaks, above 101.00 mark. 

Growing expectations of an eventual Fed rate-hike action in December coupled with aggressive fiscal stimulus hopes from Trump administration continues to underpin the greenback and restricted any swift recovery for the major.

There were no major market-moving economic data scheduled for release from the Euro-zone economic calendar, while US economic docket features the release of existing home sales and Richmond manufacturing index.

However, market focus would remain on Wednesday's FOMC meeting ahead of next week's monthly jobs report (NFP), which would provide fresh insights over the Fed's next monetary policy move and trigger the next leg of directional move for the major. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "From a technical point of view, the EUR/USD pair retreated from a fresh weekly high of 1.0657 and trades in the 1.0610 region, confined to a tight consolidative range and with the risk still towards the downside, given that in the 1 hour chart, the price is still unable to settle beyond a bearish 100 SMA, currently at 1.0640, while technical indicators are flat within bearish territory. In the 4 hours chart, the price is hovering back and forth around a bearish 20 SMA, while technical indicators head modestly lower but within neutral territory, with no directional strength. A break below 1.0590 should favor another leg lower, towards the 1.0505/20 price zone."

To learn more about this topic, check our video analysis