EUR/USD remains near one-year low in Asia

A minor recovery in the EUR/USD pair quickly ran out of steam at 1.0558 in Asia as the greenback remained solidly bid on heightened expectations of a steeper Fed rate hike path.

The currency pair was last seen trading around 1.0540, which is just short of the one-year low of 1.0526 in the North American session yesterday.

ECB-Fed Policy divergence continues to widen

The ECB-Fed policy divergence continues to widen with each passing day on the back of heightened political uncertainty across Eurozone and strong US data.

US durable goods orders data released yesterday showed corporate spending spiked in October. Furthermore, the Fed minutes backed market expectations of December rate hike.

Moreover, with each piece of strong US data, the talk of a steeper Fed rate hike path is gathering pace. The focus today is on the German GDP and consumer confidence release.

EUR/USD Technical Levels

A break below 1.0526 (previous day’s low) would open doors for a test of 1.05 (zero figure) under which the March 2015 low of 1.0463 could be put to test. On the higher side, breach of resistance at 1.0558 could yield a technical correction to 1.0590 (5-DMA) and 1.0659 (10-DMA).