EUR/USD cut losses to 1.1150 ahead of FOMC

The single currency has briefly regained the positive territory vs. the buck on Wednesday, with EUR/USD returning to the 1.1150/55 band for the time being.

EUR/USD bounces off 1.1120, eyes on FOMC

After bottoming out in the 1.1120 area in early trade, the pair has managed to recover ground lost as the initial upside momentum in the greenback seems to be fizzling out.

USD met increased buying interest early in the Asian session after the BoJ left unchanged its benchmark rate, although it has abandoned its ‘monetary base target’ and reiterated its readiness to act if needed.

Later in the NA session, the greenback will remain in centre stage in light of the FOMC meeting. Market consensus leans towards an ‘on hold’ stance from the Committee, although markets’ attention will gyrate around Yellen’s press conference in search for hints on the timing of the next rate hike.

EUR/USD levels to watch

The pair is now down 0.05% at 1.1145 and a breakdown of 1.1121 (low Aug.31) would target 1.1043 (low Aug.5) en route to 1.0950 (low Jul.25). On the flip side, the immediate resistance is located at 1.1216 (high Sep.20) followed by 1.1283 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).