EUR/USD off lows, back above 1.1700 handle but lacks follow-through

   •  The post-FOMC USD buying interest prompts some fresh selling. 
   •  Italian worries exert some additional pressure on the shared currency.
   •  Selling pressure seems to have abated ahead of US economic data.

The EUR/USD pair quickly reversed an early European session dip to sub-1.1700 level and recovered around 30-pips from fresh weekly lows.

The pair extended overnight rejection slide from the 1.1800 neighborhood and kept losing ground for the second consecutive session. The US Dollar extended its post-FOMC positive momentum and was seen as one of the key factors dragging the pair lower. 

Adding to this, anxiety over the budgetary situation and elevated political uncertainty in Italy exerted some additional downward pressure on the shared currency and further collaborated to the pair's decline to an intraday low level of 1.1685.

The bearish pressure, however, seems to have abated, at least for the time being, as market participants now look forward to the US macroeconomic releases - the final Q2 GDP growth figures and durable goods orders data, for some meaningful impetus.

Technical levels to watch

Immediate resistance is now pegged near the 1.1740 level, above which the pair is likely to make a fresh attempt towards reclaiming the 1.1800 handle. On the flip side, renewed selling below the 1.1700 handle now seems to accelerate the downfall further towards 100-day SMA support, currently near the 1.1660-55 region.