ANZ Research discusses the key EUR/USD technical levels to watch going into next week's FOMC meeting.

"Positioning is becoming more supportive. EUR/USD noncommercial net shorts narrowed, leaving scope for further short covering if ECB expectations remain firm. Next week’s euro area ZEW survey data are the key domestic releases. However, the FOMC will likely be the larger catalyst for EUR/USD through its impact on relative rate expectations," ANZ notes.

"Technicals remain constructive but momentum is flattening, consistent with consolidation ahead of the FOMC rather than trend continuation. EUR/USD is trading between 1.1615, the 38.2% retracement of the January–June decline, and 1.1634, the 200- dma. The 50- and 100-dma are rising and providing support at 1.156 and 1.153 beneath. Firm ECB pricing and scope for further short covering favour a break above 1.1634, with initial resistance at 1.1709 and then 1.175.

Dips towards 1.159 should remain supported, although a hawkish Fed and a close below 1.153 would leave the pair vulnerable to a deeper pullback," ANZ adds.