EUR/USD advances above 1.10 ahead of FOMC

EUR/USD has briefly tested highs near 1.1020 on Wednesday as market participants get ready for the FOMC meeting later in the NA session.

EUR/USD choppy ahead of FOMC

The pair is alternating gains with losses around the 1.1000 handle today, looking to extend the rebound from overnight troughs in the 1.0980 region.

Absent releases in Euroland, the focus of attention will remain on the docket across the pond, where Pending Home Sales and Durable Goods Orders are due ahead of the more relevant FOMC meeting.

Market consensus has ruled out a change to the Fed Funds although the Committee’s statement is expected on the hawkish side.

EUR/USD levels to watch

The pair is now gaining 0.14% at 1.1000 facing the initial hurdle at 1.1057 (20-day sma) followed by 1.1075 (200-day sma) and then 1.1166 (high Jul.14). On the flip side, a breakdown of 1.0913 (post-Brexit low Jun.24) would open the door to 1.0820 (low Mar.10) and finally 1.0777 (low Jan.21).