EUR/USD flirts with lows near 1.1240 on EZ GDP, ECB eyed

The Euro paid a blind eye to an upbeat final reading of the Eurozone Q1 GDP, sending the EUR/USD pair further into the red zone to print fresh daily lows at 1.1240 levels.

EUR/USD dips to 10-DMA at 1.1240 ahead of ECB

After witnessing a brief phase of consolidation almost throughout the Asian session, the EUR/USD pair ran into fresh sellers, as markets resorted to repositioning ahead of the ECB monetary policy decision.

The latest leg down in the spot is also mainly attributed to increased expectations of the ECB turning out to be very benign in its policy approach, and at the same time the central bank’s downbeat assessment of the economy, particularly the inflation outlook.

The ECB policy decision is likely to shape up the next direction in the main currency pair, while ex-FBI director Comey’s testimony will also have a  major bearing on EUR/USD.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “The short term picture is neutral-to-bearish, with the price a few pips below its 20 SMA and technical indicators heading marginally lower around their mid-lines, although direction will depend on sentiment. Below 1.1200 on a dovish ECB, the next intraday supports come at 1.1160 and 1.1120, while beyond 1.1300, on a positive surprise, 1.1345 and 1.1390 as the resistances/probable bullish targets for this Thursday.”