EUR/USD wavers as Euro Stoxx 50 pares gains

FXStreet (Mumbai) - The EUR/USD pair recovered in early Europe to 1.13, but fell back to 1.1290 levels even though the Euro Stoxx 50 futures pared gains, while the treasury yields dropped.

Focus on stocks ahead of FOMC

The common currency is likely to follow the movement in the European stock markets ahead of the FOMC event due later today. The pan-European Euro Stoxx 50 futures pared part of their early gains, lending support to the common currency.

Meanwhile, the 10-year and 30-year treasury yields in the US also inched lower, indicating a possible risk aversion. Consequently, the EUR managed to restrict losses. Apart from the movement in the stocks and Treasury yields, the spot could also be influenced by the SNB rate decision and the resulting action in the EUR/CHF cross.

EUR/USD Technical Levels

The spot recovered from the low of 1.1284 to trade around 1.13. The immediate resistance is located at 1.1317 (daily high), above which the pair could target 1.1373 (Sep 14 high). On the other hand, support is seen at 1.1283 (Sep 14 low) and 1.1288 (200-DMA).