- EUR/USD fails to capitalize on the early uptick to over one-month tops.
- A modest USD rebound might have prompted some long-unwinding trade.
- The downside remains limited ahead of the ECB monetary policy update.
The EUR/USD pair extended its steady pullback from over one-month tops and is currently placed near the lower end of its daily trading range, around 1.1130-25 region.
The pair failed to capitalize on the previous session's upsurge/early uptick to the highest level since November 4 and started retreating from the vicinity of the very important 200-day SMA amid a modest US dollar uptick.
Focus remains on the ECB decision
A modest pickup in the US Treasury bond yields, amid improving global risk sentiment, helped the greenback to stage a modest recovery from near four-month lows set on Thursday in the aftermath of dovish sounding FOMC statement.
It is worth recalling that the Fed left interest rates unchanged on Wednesday but signalled that the policy stance is likely to remain accommodative and also indicated that interest rates would remain on hold through 2020.
This coupled with some repositioning trade – heading into the latest ECB monetary policy update – further seemed to have contributed to the pair’s intraday pullback, albeit the downside is likely to remain limited.
Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent positive move might have already run out of the steam ahead of a technically significant moving average (200-DMA).
The ECB decision will be followed by the post-meeting press conference, where comments by the new ECB President Christine Lagarde might influence the shared currency and produce some short-term trading opportunities.
Technical levels to watch
|Today last price||1.1131|
|Today Daily Change||-0.0008|
|Today Daily Change %||-0.07|
|Today daily open||1.1139|
|Previous Daily High||1.1146|
|Previous Daily Low||1.107|
|Previous Weekly High||1.1116|
|Previous Weekly Low||1.1002|
|Previous Monthly High||1.1176|
|Previous Monthly Low||1.0981|
|Daily Fibonacci 38.2%||1.1117|
|Daily Fibonacci 61.8%||1.1099|
|Daily Pivot Point S1||1.1091|
|Daily Pivot Point S2||1.1042|
|Daily Pivot Point S3||1.1014|
|Daily Pivot Point R1||1.1167|
|Daily Pivot Point R2||1.1195|
|Daily Pivot Point R3||1.1243|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.