EUR/USD stuck in tight range below 1.0920, ECB eyed
|Fresh bids emerged just below 1.09 handle, prompting a tepid bounce in EUR/USD back towards daily tops reached previously at 1.0921. However, fresh sellers were queued up near the last, sending the rate back around 1.0915 levels.
The major swung back onto the bids, as the greenback remains offered against most of its main competitors amid persistent weakness in the treasury yields, in the wake of yesterday’s US tax plans disappointment.
Moreover, expectations of hawkish tone from the ECB on its QE program on the back of fading uncertainty over the French election, keeps the sentiment around the EUR buoyed. Macron is seen leading the round 2 of the French election, with markets almost pricing-in an anti-EU candidate Le Pen defeat in the French presidential race.
Further, softer tone seen in the European equities combined with weaker oil prices point towards risk-off environment, which helps boost the funding currency status of the Euro.
Markets eagerly await the German CPI release ahead of ECB policy decision, while a flurry of US economic releases also remain in focus going forward.
EUR/USD Technical Levels
Technical resistances for the pair are aligned at 1.0950/51 (psychological levels/ 5-month tops), 1.0965 (Fib R2) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0900/1.0898 (zero figure/ 5-DMA), a break below that level could open the door to 1.0870/61 (Fib S1/ classic S1) and 1.0802 (10-DMA).
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