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EUR/USD flirting with 1.1400 on European open

FXStreet (Edinburgh) - After hitting fresh multi-day tops near 1.1450 post-FOMC, EUR/USD has now returned to the 1.1400 neighbourhodd amidst renewed selling mood.

EUR/USD poised for consolidation

Market participants continue to digest the recent decision by the Federal Reserve to postpone the first rate hike after almost a decade for later in the year, with markets now pricing in around 30% of probabilities of a lift-off in October and just above 60% in December.

The dovish tone struck by the Committee surprised markets and has propelled spot to the mid-1.1400s, levels last traded in late August.

In the data space, EMU’s Current Account surplus is expected to come in at €21.3 billion during July, down from June’s €25.4 billion.

EUR/USD key levels

The pair is losing 0.21% at 1.1409 with the immediate support at 1.1390 (low Sep.18) ahead of 1.1284 (low Sep.17) and finally 1.1258 (low Sep.15). On the other hand, a breakout of 1.1441 (high Sep.17) would open the door to 1.1523 (high Aug.26) and then 1.1578 (high Aug.25).

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