FXStreet (Mumbai) - The EUR/USD pair fell below 1.12 levels in the early European session as the mixed action in the European stocks put focus back on the FEd rate hike bets ahead of next week’s FOMC decision.
Drops to hourly 50-MA
The spot now trades around its hourly 50-MA currently located at 1.1185 levels. At the time of writing, the German Dax was down 0.5%, while France’s CAC was up 0.72%. London’s FTSE index was up 0.40%. The mixed action does little to support the funding currency like the EUR.
Moreover, the focus now shifts to the rate hike bets in the US. The two-year yield, which mimics rate hike bets, is trading close to 2015 high of 0.767%. Meanwhile, the fed fund futures indicate about 30% probability of a rate hike next week.
EUR/USD Technical Levels
The spot currently trades around 1.1190. The immediate resistance is located at 1.1244 (daily high), above which gains could be extended to 1.1296 (23.6% of May14-Mar15 rally). On the other side, support is seen at 1.1185 (hourly 50-MA) and 1.1130 (100-DMA).
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