EUR/USD testing weekly lows near 1.1150

The EUR/USD pair appears to have stalled its downward spiral and now flirts with more-than one-week lows, after having failed to sustain the rally above 1.12 handle.

EUR/USD trades below 5-DMA at 1.1158

Currently, EUR/USD trades almost unchanged at 1.1151, hovering close to ten-day lows reached at 1.1144 on Tuesday. The main currency pair consolidates the downside after yesterday’s extensive sell-off from above 1.12 handle after the greenback picked-up significant strength, as markets sought to cover their USD shorts heading into the BOJ and Fed policy events due later on the day.

Amid a lack of fresh economic data lined up for release later today, all eyes will remain on the BOJ and Fed policy decisions for fresh direction on the EUR/USD pair. Meanwhile, the major may get strongly influenced by the EUR/JPY cross on the BOJ’s verdict announcement due out shortly.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1191/98 (50 & 10-DMA). A break beyond the last, doors will open for a test of 1.1213 (Sept 20 high). On the flip side, the immediate support is placed at 1.1121 (Aug 31 low) below which 1.1100 (round figure) could be tested.