FUNDAMENTAL OVERVIEW USD:The US dollar has been mostly rangebound in the past couple of days as hedging activity into the FOMC decision and renewed escalation on the US-Iran front kept the price action in check. Iran launched a “surprise attack” against US forces in the region tonight. All the missiles and drones were intercepted, but the escalation increased the risk of a prolonged conflict and therefore higher energy prices.Today, all eyes will be on the FOMC decision. The Fed is expected to keep interest rates unchanged at 3.50%–3.75%. The consensus expects up to two dissenters to vote in favour of a rate hike at this meeting, likely Fed's Logan and/or Fed's Hammack. We won't get the Summary of Economic Projections (SEP) at this meeting.Forward guidance is likely to remain limited, with Fed Chair Warsh expected to refrain from providing any major policy signals while stressing data dependence and the Fed's commitment to price stability.The hawkish surprises include more than two dissenters voting for a rate hike or an outright rate hike. The “dovish” surprise, on the other hand, would be a perfect consensus with no dissenters.If the Fed delivers a hawkish surprise, we can expect the US dollar to rally into new monthly highs on the hawkish repricing. Conversely, a “dovish” surprise would likely see hedges getting unwound and weighing on the greenback in the short-term. For a more comprehensive Fed preview: Fed preview: It's all about the dissentersEUR:On the EUR side, the ECB left interest rates unchanged at the last meeting but communicated via the usual post-meeting media “leaks” that it’s ready to hike at the September meeting if the inflation outlook were to deteriorate. The majority of policymakers that spoke after the decision stressed data-dependence and refrained from pre-committing to a policy move in September. They have also highlighted the lack of clear evidence of second-round effects and stable inflation expectations. On Friday, we get the Flash Eurozone CPI report which will influence interest rate expectations. At the moment, the market is pricing in a 65% chance of a rate hike at the September meeting with a total of 37 bps of tightening expected by year-end. EURUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that EURUSDis trading below the key 1.14 zone where we have also the major downward trendline for confluence. This is a strong technical resistance where we can expect the sellers to keep stepping in with a defined risk above the trendline to target the 1.10 handle. The buyers, on the other hand, will need a break above the trendline to open the door for a rally into the 1.16 handle next.EURUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the consolidation around the resistance ahead of the FOMC decision. Again, the sellers will continue to step in around these levels with a defined risk above the trendline, while the buyers will wait for a break above the trendline to pile in for a rally into new highs. EURUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’s not much we can add here as the near-term direction will be decided by the FOMC decision. A hawkish surprise would trigger a selloff into new monthly lows, while a dovish surprise would lead to an upside breakout and take us to the 1.1482 level. The red lines define the average daily range for today but in case we get surprises from the FOMC decision, they won’t be respected. UPCOMING CATALYSTSToday, we have the FOMC rate decision. Tomorrow, we get the Eurozone Flash Q2 GDP, the US PCE price index, the US Advance Q2 GDP and the US Jobless Claims figures. On Friday, we conclude the week with the Eurozone Flash CPI and the US Q2 Employment Cost Index. Traders will also keep monitoring US-Iran developments. This article was written by Giuseppe Dellamotta at investinglive.com.