FXStreet (Edinburgh) - The selling interest is now building up around the single currency, pushing the EUR/USD to test the critical 1.3600 support.

EUR/USD weaker pre-FOMC, eyes on Draghi

Spot is transiting session lows at the moment, coming down from intraday tops just above 1.3630 posted in early European trade. Later on, the FOMC minutes appear as the only catalyst in the very near term for the pair on the USD side of the equation preceding the speech by ECB’s Draghi in London tonight. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “EUR is likely to trade within a range 1.3500 to 1.3700 until there is a stronger catalyst”. Ahead in the week, Chinese trade balance figures due tomorrow would set the tone for the risk appetite trends in early Asian session ahead of the German consumer prices due on Friday.

EUR/USD key levels

At the moment the pair is retreating 0.03% at 1.3608 and a break below 1.3602 (Kin-Sen) would open the door to 1.3576 (low Jun.26) and finally 1.3574 (low Jun.23). On the upside, the initial hurdle lines up at 1.3639 (50% of 1.3701-1.3576) ahead of 1.3664 (high Jul.3) and then 1.3677 (200-d MA).

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