EUR/USD under pressure ahead of ECB
Despite today’s softer tone, the pair keeps the recent range ahead of the key ECB gathering due on Thursday. According to recent rumours and officials, the central bank would likely publish minutes in the future, in order to increase the transparency. Mansoor Mohi-uddin, Director of FX Strategy at UBS, commented, “we expect the euro to stay capped within its current 1.28-1.34 trading range by renewed dovish commentary by the ECB. President Draghi is likely to stress the central bank can still ease policy further including making its deposit rate negative. Moreover, the central bank may still consider further Longer-Term Refinancing Operations to support the region's weaker banks”.
EUR/USD critical levels
At the moment the pair is down 0.11% at 1.3272 with the next support at 1.3208 (high Jul.11) ahead of 1.3200 (psychological level) and hen 1.3198 (MA10d). On the upside, a break above 1.3297 (high Jul.26) would expose 1.3302 (high Jun.20) and finally 1.3325 (low Jun.18).