EUR/USD volatility expected ahead of crucial Fed rate decision

EUR/USD is consolidating around 1.0800 as markets await the Federal Reserve's upcoming monetary policy decision. The pair has shown limited directional bias in recent sessions, with traders reluctant to take significant positions before the Fed announcement. Market consensus expects the Fed to maintain current rates, but focus remains on forward guidance and any hints about future policy trajectory. European Central Bank officials have maintained a hawkish stance, providing underlying support for the euro. Technical analysis shows EUR/USD trapped between resistance at 1.0850 and support at 1.0750. A hawkish Fed surprise could push the pair toward 1.0700, while dovish signals might trigger a rally above 1.0900. Implied volatility has risen significantly, suggesting potential for sharp moves post-announcement. Traders are advised to monitor both the rate decision and Chairman Powell's press conference for directional cues.