EUR/USD moves to session highs near 1.2030, eyes on FOMC

• The pair managed to regain some buying interest and climbed to 1.2030.
• DXY tested lows near 92.20 and is now attempting to rebound.
• US ADP report and the FOMC meeting should drive the sentiment today.

After bottoming out in the 1.1980 region on Tuesday, EUR/USD met some dip-buyers and has now regained the critical 1.20 handle and above.

EUR/USD focused on data, FOMC

The pair regained some upside traction today amidst the ongoing bearish move, staging a so far decent rebound from Tuesday’s multi-month lows in the 1.1985/80 band.

The somewhat offered bias around the greenback motivated the US Dollar Index to leave behind the vicinity of 92.50, or recent peaks, and thus collaborating with the bounce in spot.

The buck is trading on a softer tone today despite yields of the US 10-year note area currently testing peaks in the boundaries of the psychological 3.0% level, up some 4 bp from weekly lows.

In the data space, April’s final manufacturing PMI in Germany matched the preliminary reading while EMU’s PMI surprised to the upside. Later in the session, EMU’s advanced GDP figures for the January-March period are also due.

In the US calendar, the focus of attention will be on the ADP report and the FOMC meeting, expected later in the day.

EUR/USD levels to watch

At the moment, the pair is gaining 0.16% at 1.2013 facing the next hurdle at 1.2155 (10-day sma) followed by 1.2210 (high Apr.26) and finally 1.2246 (21-day sma). On the flip side, a break below 1.1982 (low May 1) would target 1.1916 (2018 low Jan.19) en route to 1.1718 (monthly low Dec.12 2017).