EUR/USD accelerates the decline below 1.2300

• The selling pressure is dragging the pair to fresh lows in sub-1.23 levels.
• USD regained the 90.00 handle and above measured by the DXY.
• EMU’s Economic Sentiment dropped markedly in March.

The selling pressure is now mounting around the European currency and keeps pushing EUR/USD to lower levels, testing the proximity of 1.2290, or daily lows.

EUR/USD now looks to FOMC

The pair came under renewed downside pressure on Tuesday, eroding part of yesterday’s advance and re-shifting its focus to weekly lows in the mid-1.2200s, all amidst quite a moderate rebound in the buck.

In fact, the greenback has managed to regain the 90.00 mark and above when measured by the US Dollar Index (DXY), finding at the same time decent support in the 89.80/75 band and partially recovering after Monday’s pullback.

In the data space, German/EMU’s Economic Sentiment came in below expectations for the month of March, adding to the pair’s daily decline.

In the meantime, further consolidation is expected in the global assets ahead of tomorrow’s FOMC meeting, where the Fed is expected to hike rates by 25 bps while an update of the ‘dots plot’ will also be closely watched.

EUR/USD levels to watch

At the moment, the pair is down 0.43% at 1.2283 facing immediate contention at 1.2258 (low Feb.19) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a break above 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16).