EUR/USD testing daily highs near 1.2270 ahead of FOMC

EUR/USD now looks to FOMC

The pair keeps the erratic performance so far this week although well into the familiar range between 1.2155 and 1.2555. Anyone of these levels could be tested in the very near term depending on the outcome of today’s FOMC meeting.

In the meantime, spot keeps challenging the short-term support line off 2018 lows (January 9, 1.1916), which has been doing well containing the selling impetus so far.

On the USD-universe, the buck has receded from recent tops in the 90.45/50 band, while yields of the key US 10-year reference stays so far sidelined in the boundaries of the 2.90% mark.

Later in the session, consensus among traders points to a ‘hawkish hike’ today by the Federal Reserve, although the bulk of the attention should be on the revised outlook and the ‘dots plot’.

Other than the Fed gathering, February’s Existing Home Sales are due along with the EIA weekly report.

EUR/USD levels to watch

At the moment, the pair is gaining 0.24% at 1.2270 and a breakout of 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16). On the flip side, immediate contention emerges at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).