EUR/USD stuck within range near 1.1160

The shared currency is holding on to its daily gains vs. the greenback, taking EUR/USD to the 1.1165/60 band.

EUR/USD focus on Fed

Spot keeps the upbeat tone at the beginning of the week, bouncing off Friday’s lows in the 1.1140 area although the upside seems to have found strong resistance in the vicinity of 1.1180 for the time being.

The renewed selling pressure around the greenback following Friday’s higher-than-expected inflation figures in the US economy is allowing the rebound in the risk-associated space on Monday, with the pair trading just above the key 200-day sma albeit in a narrow range.

In the meantime, speculations on a potential rate hike by the Federal Reserve at its meeting on Wednesday remain the exclusive driver for global sentiment, with the probability of a rate hike this month currently at 12% according to CME Group’s FedWatch tool.

EUR/USD levels to watch

The pair is now up 0.07% at 1.1163 and a breakdown of 1.1145 (low Sep.16) would target 1.1121 (low Aug.31) en route to 1.1043 (low Aug.5). On the flip side, the immediate resistance is located at 1.1207 (20-day sma) followed by 1.1288 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).