The dollar endured some mixed fortunes yesterday after the US CPI data but against the euro, it fell on the day but held on at a key resistance point. That being the 100-day moving average (red line), now seen at 1.0803. That level is what is helping to limit the recent bounce for the pair, alongside a large set of option expiries today.
The latter will roll off later in US trading but in the meantime, it should keep price action contained as we are seeing now. In any case, traders have little conviction to go running before the Fed decision comes along, so there's that to consider as well.
In examining the technicals, buyers are looking poised but they are staying guarded on breaking to the upside. It all comes down to the Fed decision and that will likely determine if the next step forward for EUR/USD will be a move back towards 1.1000 or a potential drop towards the 200-day moving average (blue line) at 1.0530 currently.
