EUR/USD in red near 1.2330 ahead of PMIs, FOMC

• The pair remains under heavy downside pressure on Wednesday.
• The 1.2315/20 band emerged as decent support so far.
• Flash PMIs, US FOMC minutes next of relevance later today.

The selling pressure around the shared currency remains unabated so far this week, with EUR/USD meandering the lower bound of the recent range around 1.2330 ahead of the opening bell in Euroland.

EUR/USD all eyes upon the FOMC

Spot is down for the fourth consecutive session on Wednesday, shedding more than two cents since Friday’s fresh cycle tops in the 1.2555/60 band and always amidst a strong rebound in the demand for the greenback.

The down move in the pair comes along with a solid performance of yields in the US money markets, where the 10-year reference is hovering over the 2.90% neighbourhood, reviving the positive correlation between yields and the buck.

Later in the session, advanced PMIs in the euro bloc for the current month should grab markets’ attention during the morning in the Old Continent, while the publication of the FOMC minutes will be the salient event later today.

In addition, flash manufacturing PMI, existing home sales and the API’s report on crude oil stockpiles are also due across the Atlantic

EUR/USD levels to watch

At the moment, the pair is losing 0.03% at 1.2333 facing immediate contention at 1.2317 (low Feb.21) followed by 1.2276 (low Feb.14) and finally 1.2206 (low Feb.9). On the upside, a breakout of 1.2557 (2018 high Feb.16) would target 1.2598 (61.8% Fibo of the 2014-2017 drop) en route to 1.2886 (high Oct.15 2014).