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Forex pairs in this Article » EUR/USD (Edinburgh) - The EUR/USD keeps falling pre-FOMC gathering on Wednesday, approaching the critical support at 1.3600.

EUR/USD in 4-day lows

The pair already eroded earlier gains and seems it found support near the 1.3600 handle, bouncing off to the 1.3610/15 area so far, as the FX community gears up for the Fed meeting due in the European evening. Poor EMU data from Private Loans and Money Supply during December would be collaborating with the downside as well. Analysts at BBH commented in this regard: “This may fuel speculation over next week's ECB meeting. However, the lending figures are not being depressed by the price of money, so an interest rate cut, as some have suggested, seems less likely. Perhaps one of the most important developments from Davos was Draghi's suggestion that the central bank could (eventually) buy bank bonds backed back loans to households and businesses”.

EUR/USD levels to consider

As of writing the pair is losing 0.45% at 1.3608 and a break below 1.3594 (100-d MA) would expose 1.3564 (daily cloud base). On the upside, the initial barrier lies at 1.3689 (high Jan.28) followed by 1.3716 (high Jan.27) ahead of 1.3740 (high Jan.24).
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