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EUR/USD fades the spike to 1.0660

FXStreet (Edinburgh) - After a brief test of session highs near 1.0660, EUR/USD has now returned to the 1.0630/25 band.

EUR/USD bid on poor US data

Disappointing US results today plus auspicious prints from manufacturing and services PMIs in Euroland have given extra legs to the pair, although the bull run lost upside momentum ahead of the 1.0660 area, as the ‘sell on rallies’ stance keeps prevailing amongst traders.

Ahead in the session the Fed’s close meeting is due next, with market participants watching closely this development, as it could gives further clues on a potential lift-off in December.

EUR/USD levels to watch

As of writing the pair is retreating 0.20% at 1.0623 and a breakdown of 1.0601 (low Nov.23) would target 1.0519 (low Apr.13) en route to 1.0456 (2015 low Mar.16). On the other hand, the next up barrier aligns at 1.0703 (accelerated downtrend from 1.1496) ahead of 1.0829 (high Nov.12) and finally 1.1062 (200-day sma).

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Fed closed meeting preview: What to expect of EUR/USD?

The Federal Reserve is holding a closed meeting at 16:30 GMT with one item in the agenda: review and determination by the Board of Governors of the advance and discount rates to be charged the Federal Reserve Banks.
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