Euro sidelined vs. US Dollar around 1.0940, PMIs next

By FXStreet FXStreet (Edinburgh) – The shared currency has left the area of weekly highs around 1.1050 vs. the greenback, with EUR/USD now stabilizing in the 1.0950/40 band.

EUR/USD focus on FOMC, PMIs

A cautious tone prevails amongst traders today, as the critical FOMC meeting has finally arrived. Market expectations of a Fed’s lift-off today remain firm, with probabilities of a 50 bp rate hike currently above 80%.

Apart from the Fed’s rate decision, preliminary PMIs for the current month are due in Euroland, as well as flash inflation figures for the region. Market consensus sees consumer prices to have risen at an annual pace of 0.1% in December, while Core prices are expected at 0.9% YoY.

EUR/USD levels to consider

At the moment the pair is up 0.21% at 1.0944 facing the next hurdle 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). On the other hand, 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).

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Source:: FX Street