EUR/USD bounces from lows, back above 1.0900

The euro recovered all the lost ground against the US dollar and is back into positive territory. EUR/USD is still trading in the range of the last 48 hours, between 1.0925 and 1.0880 ahead of tomorrow Fed’s decision. 

The pair continues to move sideways near multi-month highs. After the beginning of the US session, it dropped to 1.0885, hitting a new daily low. Shortly afterward turned to the upside, rising back above 1.0900. Currently is hovering around 1.0915, on top of the 20-hour moving average that stands at 1.0908. 

Will the Fed break the range? 

Today’s economic data included only the Eurozone manufacturing PMI that came in slightly below the flash estimate (56.8) at 56.7. In the US, traders await tomorrow Fed’s statement. Also on Wednesday, the ADP employment report will be released. Labor market data could impact on the US dollar and also affect Friday’s expectation for NFP. 

Regarding fundamentals, the recent modest rise of the euro took place amid the release of the latest poll ahead of the French second round elections. The survey from IFOP showed a bigger lead of Macron (59.5, previously 59.0) against Le Pen (40.5/41.0).

Macron vs Le Pen: How to trade the French elections with Joseph Trevisani and Yann Quelenn

Technical levels

To the upside, resistance levels might be located at 1.0925 (upper limit of the current range / May 1 & 2 high), 1.0950 (Apr 25 & 26 high) and 1.0980 (Oct 13 low). On the flip side, support is seen at 1.0880/85 (May 1 & 2 low), 1.0850 (Apr 27 low) and 1.0820 (Mar 22 high).