The European currency is alternating gains with losses vs. the dollar, with EUR/USD currently hovering over the 1.0930/20 area.
EUR/USD lower pre-FOMC
The weakness around EUR persists today despite EMU’s inflation figures have surprised to the upside in their anticipated measure for the current month. Previously, preliminary manufacturing and services PMIs in the euro region have come in mixed, adding some extra selling pressure to the pair.
However, investors remain cautious ahead of the critical FOMC gathering due later in the NA session. Recall that market consensus sees the Fed hiking rates today, with the probability of a 50 bp rate hike currently above 80%.
EUR/USD levels to consider
At the moment the pair is losing 0.01% at 1.0920 and a breakdown of 1.0895 (38.2% Fibo of 1.1496-1.0524) would aim for 1.0808 (low Jul.20) and finally 1.0753 (23.6% Fibo of 1.1496-1.0524). On the other hand, the initial hurdle aligns at 1.1060 (100-day sma) followed by 1.1124 (61.8% Fibo of 1.1496-1.0524) and then 1.1245 (downtrend from 1.1713).