EUR/USD comfortable in the mid-1.11s ahead of FOMC

EUR/USD has stabilized in the mid-1.11s after bouncing from fresh 3-week lows scored during the European session.

With market’s focus solely on FOMC statement and economic projections now, EUR/USD has been confined to familiar ranges, with the downside contained by the Aug 31 low at 1.1122 and the upside capped by the 1.1160 zone. At time of writing, the pair is trading at 1.1145, still a few pips down on the day.

The Fed will announce its monetary policy decision at 18:00 GMT today, with expectations of any move practically non existent. However, focus will be on Fed’s wording and the so-called dot plot for signs on whether the bank remains on track to raise rates at least once again this year.

EUR/USD levels to watch

In terms of technical levels, immediate supports could be found at 1.1122 (Aug 31 & Sep 21 low), 1.1100 (psychological level) and 1.1070 (Aug 9 low). On the flip side, resistances are seen at 1.1165 (50-day SMA), 1.1193 (100-day SMA), 1.1249 (Sep 16 high), 1.1284 (Sep 9 high) and 1.1326 (Sep 8 high).