- EUR/USD partially recovers lost ground after Tuesday’s pullback.
- Germany GfK Consumer Confidence worsened to -30.6 in August.
- Investors expect the Fed to raise rates by 75 basis points at its meeting on Wednesday.
After Tuesday’s sharp decline, the EUR/USD manages to regain composure and advance to the 1.0160 area on Wednesday.
EUR/USD appears to be supported around 1.0100
Having bottomed near the 1.0100 area in the first half of the week, it appears that a new buying interest in EUR/USD has resurfaced amid a dollar downside correction.
The pair is under pressure in the coming hours ahead of the key FOMC meeting later in the North American session, where the Fed is expected to continue normalizing monetary conditions through a 75 basis point rate hike.
Looking at national data, consumer confidence in Germany, according to GfK, deteriorated to -30.6 in August. Consumer confidence in France did the same after deflating to 80 in July (from 82).
Later in the day, preliminary results for the US Goods Trade Balance, Durable Goods Orders and Pending Home Sales will be released.
EUR/USD Levels
At the moment, the pair is gaining 0.27% at 1.0142 and a break of 1.0278 (weekly high of July 21) would target 1.0438 (55-day SMA) on the way to 1.0615 (weekly maximum of June 27).
On the other hand, the initial contention emerges at 1.0107 (weekly low of July 26), followed by 1,0000 (psychological level) and, finally, 0.9952 (2022 low of July 14).
Source: Fx Street
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