EUR/USD treading water around 1.1000

EUR/USD continues treading water around 1.1000, unable to set fresh short-term direction as investors adopt a cautious stance ahead of the Federal Reserve decision on monetary policy.

EUR/USD reached a daily peak of 1.1029 ahead of the American opening but was rejected, and better-than-expected housing and confidence data in the US pushed the pair to a fresh low of 1.0977. The pair was last at 1.0984, 0.1% below its opening price.

Although no policy changes are expected, markets will scrutinize Fed statement for hints at the timing of the next hike, as hopes resurfaced after a series of upbeat economic data.

EUR/USD levels to watch

As for technical levels,  next resistances are seen at 1.1033 (10-day SMA), 1.1078 (200-day SMA), 1.1164 (Jul 14 high) and then 1.1185 (Jul 5 high). On the other hand, supports could be found at 1.0951 (Jul 25 low), 1.0911 (post-Brexit low, Jun 24) and 1.0821 (Mar 10 low).