EUR/USD: The calm before the Fed storm, around 1.1000

The EUR/USD pair is seen consolidating in an extremely narrow range around 1.10 handle during the European session, having quickly bounced-off a dip to 5-DMA in the last hour.

EUR/USD awaits Fed decision

Currently, EUR/USD trades +0.13% higher at 1.1000, with a day’s high of 1.1104 and day’s low of 1.0981. The main currency pair oscillated back and forth in a 25-pips slim range, awaiting fresh impetus from the upcoming US macro news and Fed decision for a clear direction.

Moreover, the major keeps the bid tone intact mainly underpinned by the positive momentum seen in the EUR/GBP as well as EUR/JPY cross, amid broad GBP and JPY weakness.

Focus now remains on the FOMC statement due later today, which is likely to show an upgrade to the outlook on the labour market after the sharp rebound in jobs growth in the NFP report released in July. But that wouldn’t change the Fed’s decision of standing pat on the interest rates stance this month.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1040 (20-DMA). A break beyond the last, doors will open for a test of 1.1094 (200-DMA). On the flip side, the immediate support is placed at 1.0950 (multi-week lows/ psychological levels) below which 1.0909 (June lows) could be tested.

Trade July 27 Federal Reserve interest rate decision - Live Coverage