FxWirePro: EUR/USD heads deeper into bear territory after Fed hints of March rate rise
The EUR /USD pair declined on Tuesday as dollar rose across the board after Federal Reserve policymaker hinted a potential U.S. interest rates rise next month, turning attention to the bullish fundamentals of the world's…
The EUR /USD pair declined on Tuesday as dollar rose across the board after Federal Reserve policymaker hinted a potential U.S. interest rates rise next month, turning attention to the bullish fundamentals of the world's biggest economy.
Cleveland Fed President Loretta Mester said late on Monday she would be comfortable raising rates at this point if the economy maintained its current performance.
The Fed has raised rates twice in two years and expects to pick up the pace of tightening this year as unemployment, at 4.8 percent, has fallen to near an equilibrium level and as the Republican-controlled White House and Congress are expected to provide fiscal stimulus.
Traders' attention on Tuesday will focus on speeches by a number of Federal Reserve presidents, looking for clues on the timing of U.S. rate rises.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0670 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.0565, a break above this level would expose the pair to next resistance level at 1.0621.
To the downside, immediate support can be seen at 1.0511, a break below at this level will open the door towards next level at 1.0447.
