EUR/USD hits fresh one-month lows, around mid-1.1700s

The EUR/USD pair maintained its offered tone for the third consecutive session and touched a fresh one-month low in the past hour, albeit quickly recovered few pips thereafter. 

The German election setback continued weighing on the shared currency. This coupled with persistent greenback buying interest dragged the pair to its lowest level since August 23. 

Tuesday's hawkish comments by the Fed Chair Janet Yellen, reinforcing market expectations for additional rate hike move in 2017 provided an additional boost to the already strong sentiment surrounding the buck.

Adding to this, optimism over the US President Donald Trump's tax reform plan announcement lifted the key US Dollar Index to monthly tops and was seen exerting fresh selling pressure on the major. 

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The pair's continuous fall could also be attributed to some technical selling, especially after yesterday's bearish break below 4-week old trading range. Hence, a follow through weakness, led by continuous long-unwinding, now seems a distinct possibility. 

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Today's US economic docket features the release of durable goods orders and pending home sales data, which would now be looked upon for some fresh impetus later during the NA session.

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Technical levels to watch

A follow through selling pressure has the potential to continue dragging the pair towards the 1.1700 handle en-route its next major support near the 1.1680-75 region.

On the upside, any recovery attempts now seems to confront fresh supply near the 1.1800 mark, above which a bout of short-covering could lift the pair towards a support break, now turned resistance near the 1.1840-45 region.