EUR/USD stuck around 1.1000 handle, all eyes on FOMC statement

The EUR/USD remained confined within a narrow trading range around 1.1000 psychological mark as investors eagerly await for FOMC monetary policy decision announcement. 

In absence of any economic releases from the Euro-zone, traders seemed reluctant in creating fresh positions ahead of the key event risk as the incoming upbeat US economic data has been fueling speculations of an imminent Fed rate-hike later during 2016.  

Although, the Federal Reserve is widely expected to maintain status-quo but market participants are keen to look at the accompanying statement that could provide some hints over the possible timing for central bank's policy action in the near-future. Markets already seem to be pricing-in a hawkish tone from the Fed statement. 

Nevertheless, the pair is more likely to witness a volatile trading session ahead. 

Trade July 27 Federal Reserve interest rate decision - Live Coverage

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The 4 hours chart shows that the pair is clearly bearish, with a daily descendant trend line coming from July 14th high of 1.1164 now capping the upside around 1.1010. Technical indicators, however, lack directional strength, with the Momentum indicator having been hovering around the 100 level pretty for the last three weeks. Yesterday's high stands a few pips above the mentioned trend line, at 1.1029, being this last the level to beat to see the pair advancing further, up to the 1.1060/90 region. Approaches to 1.1100, however, should attract selling interest."

"1.0950 is the immediate support, followed by the post-Brexit low of 1.0910. A break below this last can see the pair extending its decline down to the 1.0800/40 region, a major static support area."