EUR/USD looks to regain 1.0800 amid USD selling

The bearish momentum behind the US dollar has picked-up pace, now driving EUR/USD closer towards 1.08 handle.

EUR/USD cheers unimpressive Fed

Currently, the spot rises +0.24% to fresh session highs of 1.0795, having found strong bids near 1.0760 region. After a brief phase of consolidation in the overnight trades, the main currency pair regained poise and surpassed post-FOMC, as the greenback came under renewed selling pressure in the late-Asian/ early European trades, in response to a steep drop witnessed in the USD/JPY pair.

Fed maintained a status quo at its January/February meeting - Natixis

Risk-off sentiment appears to have intensified over last hours, boosting the demand for the safe-haven yen and funding currency euro. Meanwhile, the USD index drops -0.27% to 99.42, while the benchmark 10-yr treasury yields fall -0.70%. Next on tap for the major remains the ECB economic bulletin, as the EUR docket remains data-light. While BOE decision will be closely eyed for any “rub-off “effect on the shared currency.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0814 (8-week high). A break beyond the last, doors will open for a test of 1.0850 (psychological levels) and from there to 1.0875 (Dec tops). On the flip side, the immediate support is placed at 1.0769 (daily pivot) below which 1.0755/40 (5 & 10-DMA) and 1.0712 (100-DMA) could be tested.