EUR has extended the positive momentum overnight, after the close in Wall St., leaving behind the 1.2900 mark and trading markedly up against its American counterpart.
Spain will try to sell €4 billion of 2,3 and 5 yr bonds, testing investors confidence against a backdrop of decreasing yields as of late.
Apart from the ECB statement and later press conference by M.Draghi, the docket in the euro zone will be empty. In the US, the most relevant event will be the FOMC minutes. Also the weekly report on employment data and Factory Orders are due.
As of writing, the cross is up 0.16% at 1.2925 with the next resistance at 1.2960 (high Sep.28) ahead of 1.2968 (high Oct.2) then 1.2990 (low Sep.19) and 1.3059 (high Sep.20).
On the flip side, a breakdown of 1.2876 (hourly low Oct.3) would expose 1.2822 (MA200d) then 1.2804 (low Oct.1) and 1.2796 (MA30d).