FXStreet (Edinburgh) - EUR/USD is trading in a narrow range around 1.0860, against the backdrop of increasing cautiousness in light of the upcoming FOMC gathering due later today. “In terms of EUR/USD we maintain that EUR/USD is caught in the 1.05-1.10 range near term and still project the cross at 1.06 in 1-3M. Indeed, we stress that there is a clear risk that the Fed will not be able to deliver a message today that is soft enough considering the dovish market pricing and thus that risks to EUR/USD are on the downside near term”, noted Senior Analyst at Danske Bank Christin Tuxen. In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “is essentially still stuck in its range. Overhead the market is facing tougher resistance at 1.10/1.1060. These are the recent highs and the 200 day ma, the 2014-2016 downtrend and 55 week ma and we view the market as bearish while capped here. Our target remains the 1.0523 recent low”. For more information, read our latest forex news.