EUR/USD trims daily gains ahead of FOMC statement

• EUR/USD gives up gains ahead of FOMC statement
• Fed is expected to leave rates unchanged and to adopt a more hawkish tone

 
The US dollar managed to cut some intraday losses during the American session, with EUR/USD pulling back from highs as investors await the FOMC statement on monetary policy due at 19:00 GMT.

EUR/USD came under mild pressure and gave up some ground, with spot retreating from a 5-day peak of 1.2474 to the 1.2425 zone, where it currently trades, still 0.19% above its opening price. 

The Federal Reserve concludes its 2-day policy meeting today, and no changed on monetary policy are expected. The market is expecting the next rate hike to come in March although some participants do expect the Fed to take a more hawkish tone today.

EUR/USD levels to watch

In terms of technical levels, EUR/USD could find next supports at 1.2300 (psychological level). 1.2345 (10-day SMA) and 1.2290 (Jan 24 low). On the other hand, resistances could be faced at 1.2474 (intraday high), 1.2493 (Jan 26 high) and 1.2537 (3-year high scored Jan 25).