FXStreet (Mumbai) - After bottoming around 1.1285 in early dealings, the EUR/USD pair picked-up significant strength and swung back higher beyond 1.13 barrier as the greenback loses ground ahead of the Fed event.
EUR/USD sits at three-day highs
The EUR/USD pair trades 0.31% higher at 1.1326, hovering close to fresh three-day highs reached at 1.1338 in last hours. The main currency pair regained 1.13 handle and extends further amid broad based US dollar weakness, as markets appear to have already believed that the Fed will not hike rates at its September meeting.
Moreover, the EUR/USD gains further momentum as the European stocks keep fluctuations between gains and losses, thus dampening investors’ sentiment and adding to the prevalent risk-off moods.
Looking ahead, markets now gear up for the Fed rate decision due later today, with most analysts divided on the Fed’s outlook for the interest rates, pricing odds in at around 30%.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1375 (Sept 14 High), above which gains could be extended to 1.1394 (Aug 21 High) levels. On the flip side, support is seen at 1.1257 (Sept 15 Low) below which it could extend losses to 1.1204 (Sept 1 Low) levels.
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