EUR/USD unchanged near 1.1170, FOMC weighs

EUR/USD keeps treading water in the 1.1170/80 band on Tuesday, following the generalized lack of direction in the global markets.

EUR/USD looks to data, Fed

The pair faded yesterday’s spike to the vicinity of 1.1200 the figure following a profit taking sentiment around the greenback in light of the recent strong gains.

Absent releases in Euroland today, the focus of attention will shift to the US housing sector, as Housing Starts and Building Permits are due for the month of August.

In the meantime, speculations on the potential moves by the Federal Reserve at tomorrow’s meeting and in the next months continue to dictate the mood in the global markets.

The probability of a rate hike on Wednesday remains at 12% and just above 45% for the month of December, according to CME Group’s FedWatch tool.

EUR/USD levels to watch

The pair is now down 0.01% at 1.1174 and a breakdown of 1.1145 (low Sep.16) would target 1.1121 (low Aug.31) en route to 1.1043 (low Aug.5). On the flip side, the immediate resistance is located at 1.1198 (high Sep.19) followed by 1.1285 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).