EUR/USD breaks below 1.0400 handle

A fresh bout of greenback buying interest emerged on Wednesday, with the EUR/USD pair accelerating its downslide in the past hour to break below 1.0400 handle. 

Currently trading around 1.0395 level, testing fresh session lows, the pair came under renewed selling pressure as market expectation of further Fed rate-hike actions in 2017 continued underpinning the US Dollar. 

Today's US Dollar up-move was further supported by recovery in US Treasury bond yields, in response to Tuesday's encouraging consumer confidence data that reaffirmed prospects of stronger US economic growth. 

Amid holiday-thinned trading activity and in absence of any important market moving releases, possibilities of some stops getting triggered, on a sustained break below 1.0450 level, might have also contributed to the pair's sharp slide during early NA session.

Next on tap would be the US pending home sales data, which will be looked upon for some immediate respite for bulls. 

Technical levels to watch

A follow through selling pressure below 1.0385 horizontal support is likely to accelerate the slide towards multi-year lows support near 1.0350 region below which the pair seems all set to head towards testing 2003 yearly lows support near 1.0335 level.

On the upside, sustained recovery back above 1.0400 handle might now confront immediate resistance near 1.0435-40 region, which if cleared might assist the pair to make a fresh attempt towards reclaiming 1.0500 psychological mark.