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    Sudden reversal drags EUR/USD close to session low of 1.1230 Haresh Menghani

    The EUR/USD pair erased all of its gains to 1.1280 level and turned negative to currently trade below 1.1250, near its immediate support around 20-day SMA near at 1.1235 region. Earlier during the day, the pair rebounded from 20-day SMA support as the prevalent risk-off sentiment across Asian / European equity market was seen supportive for the funding currency, Euro. A sudden bout of US Dollar buying interest seems to have emerged in the last couple of hours, dragging the EUR/USD pair back towards session through, which if broken would continue exerting pressure on the pair.Lingering concerns over 'Brexit' and its implication on the UK economy seems to provide an additional boost to the traditional safe-haven currencies, US Dollar and Yen. Going forward, outcome of the key FOMC meeting, especially the tone adopted, would now be looked upon for fresh fundamental triggers for near/medium-term direction of the pair. Technical outlookValeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that this intraday recovery is merely corrective, given that the technical indicators are barely bouncing from oversold readings, whilst the 20 SMA has extended its decline well above the current level. Additionally, the pair is below the 38.2% retracement of its latest decline around 1.1290, the level to break to regain a positive tone, and advance up to 1.1330/40.""The 23.6% retracement of the same rally stands at 1.1220, and a downward acceleration below it should see the price steadily moving towards 1.1160 a strong static support."

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