EUR/USD slides further below 1.0450 level

Having posted a session high at 1.0480 level, the EUR/USD pair turned sharply lower and reversed over 40-pips from daily peak. 

Currently hovering near session through, around 1.0435 region, the pair came under intense selling pressure amid resurgent greenback buying interest as market seemed convinced over the possibility of faster Fed rate-hike cycle in 2017. In fact, the US Dollar Index, which measures the greenback’s strength against a basket of six major currencies, has managed to recovery early lost ground and remained closer to a 14-year peak touched last week. 

In absence of any fresh economic development, possibilities of short-term traders unwinding some of their bullish positions might have collaborated to pair's sharp reversal on Wednesday amid low-volume holiday trading. 

Later during NA session, the release of pending home sales data from the US might provide some impetus for short-term traders. However, the incoming US economic data, which would be looked upon to reinforces market expectations of stronger US economic growth and higher interest rates, and hence, focus shifts to next week's US monthly jobs report that would assist investors to determine the pair's next leg of directional move. 

Technical levels to watch

Immediate support is pegged at 1.0420 level, which if broken is likely to accelerate the slide towards 1.0400 handle, en-route 1.0385-80 horizontal support. On the upside, 1.0455-60 area now becomes immediate hurdle above which the pair is likely to make a fresh attempt towards reclaiming 1.0500 psychological mark.