EUR/USD: Will it sustain the bids above 1.0900 ahead of ECB?
|The EUR/USD pair caught a fresh bid tone in Asia, as the bulls finally attempted a break from the overnight bullish consolidative phase near 1.09 handle.
The US dollar continues to trade broadly subdued, as dust settles over the US Tax plan disappointment induced sell-off, allowing a slight bid in the EUR/USD pair. The USD index was heavily sold-off into the US tax plans announcement, as the tax plans details left markets unimpressed, as the details were more or less priced-in already.
Later today, the Euro is expected to keep the bid tone intact, as investors gear up for the ECB policy decision, with a no change in the policy settings widely expected. However, the ECB President may provide some hints on tapering alongside talking the Euro zone outlook up, in the wake of receding political tensions surrounding the French election.
Also of note for the major remains a host of fresh economic releases from the US, with the durable goods data to have a significant impact on the USD moves later in the NA session.
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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