EUR/USD retreats from highs, back near 1.1180

After climbing as high as 1.1210 in early trade, EUR/USD has now lost upside momentum and returned to the 1.1185/80 band.

EUR/USD focus on the FOMC

The pair is clinging to daily gains around 1.1180 amidst some pick up in the demand for the US dollar, while the upside in EUR/GBP seems to be adding to the resilience surrounding the pair at current levels.

In the meantime, spot is advancing for the second consecutive session so far and recovering part of Friday’s significant drop to the 1.1140 area, home of the critical 200-day sma.

Ahead in the week, the BoJ and the FOMC meetings are poised to drive the sentiment around global assets. According to CME Group’s FedWatch tool and based on Fed Fund futures prices assessment, the probability of a rate hike tomorrow stays at 12% and above 45% for the month of December.

EUR/USD levels to watch

The pair is now gaining 0.04% at 1.1179 facing the next hurdle at 1.1213 (high Sep.20) followed by 1.1285 (resistance line off 2016 high) and finally 1.1329 (high Sep.8). On the other hand, a breakdown of 1.1145 (low Sep.16) would target 1.1121 (low Aug.31) en route to 1.1043 (low Aug.5).