EUR/USD firmer, sticks to gains around 1.0600

The resumption of the offered bias around the greenback has prompted EUR/USD to retake the 1.0600 barrier and beyond.

EUR/USD cautious ahead of FOMC

The pair has managed to regain some buying interest following the recent ECB-led drop to the 1.0530 region, although the upcoming FOMC meeting prompts cautiousness in light of the most likely rate hike on Wednesday.

Market consensus has practically priced in a 25 bp rate hike in the Fed Funds, although the centre of attention will be on the potential future steps by the Fed regarding further tightening during the next year, all amidst the underlying constructive stance around the buck.

From the positioning perspective, EUR speculative net shorts have been trimmed to the lowest level since mid-October during the week ended on December 6.

EUR/USD levels to watch

The pair is now up 0.39% at 1.0597 facing the next resistance at 1.0629 (20-day sma) followed by 1.0798 (high Dec.5) and finally 1.0873 (spike post-ECB Dec.8). On the flip side, a breakdown of 1.0515 (low Nov.24) would target 1.0503 (2016 low Dec.5) en route to 1.0457 (2015 low Mar.16).