EUR/USD selling pressure abates near 1.0500 handle as Fed minutes loom

After a brief dip below 1.0500 psychological mark, the EUR/USD pair bounced off few pips and is currently trading around 1.0510-15 band. 

The pair on Wednesday remained under some selling pressure and dropped to six-week lows amid ongoing concerns over political development in the Euro-zone continues to undermine the shared currency. Investors' feared that a victory for Marine Le Pen, in the upcoming French Presidential election, could potentially trigger the country's exit from the common bloc. 

Moreover, persistent US Dollar buying interest in wake of increasing bets for an imminent Fed rate-hike action, as early as the central bank's upcoming meeting in March, and collaborated to the pair's downslide to the lowest level since Jan. 11. 

The selling pressure, however, seems to have abated, at least for the time being as traders seemed to readjust their positions ahead of the today's key highlight - the FOMC meeting minutes, scheduled for release later during NY session.

Technical levels to watch

Sustained weakness below 1.0500 mark is likely to find support near 1.0480 level below which the pair would turn vulnerable to head towards 1.0400 handle with some intermediate support near mid-1.0400s.

Meanwhile on the upside, 1.0525 level might act as immediate resistance and recovery beyond this resistance could get extended towards 1.0575-80 region. Any subsequent move above 1.0575-80 hurdle now seems to be capped at 1.0600 handle.