Will EUR/USD sustain below 1.06?

FXStreet (Mumbai) - The shared currency has come under pressure as we inch closer to the FOMC event, taking the EUR/USD pair back below 1.06 levels.

Back above 1.06?

The pair clocked a high of 1.0626; a coupled of pips short of the 5-DMA located at 1.0628 before the shared currency was offered. The dip cannot be attributed to any specific reason as the data docket out of the Eurozone was thin. No major data sets are due for release out of the US as well.

Moreover, the dip below 1.06 has materialized despite the weakness in the US Treasury yields. The 10-year yield in the US extended losses to trade 4 basis points lower at 2.019%. Hence, we could see the pair rise back above 1.06 levels. The pair could waver around 1.06 levels as investors are likely to avoid taking big bets ahead of the FOMC statement.

EUR/USD Technical Levels

The pair now trades at 1.0598 levels. The immediate resistance is seen at the 10-DMA located at 1.0628, above which another stiff resistance is seen at 1.0650 levels. On the other hand, the pair could dip to 1.0550 if it sustain below 1.06 levels.