EUR/USD off-weekly tops, but firmer near 1.2050

The EUR/USD pair is seen extending its retreat from the hawkish ECB minutes inspired rebound to weekly tops of 1.2067, now looking to test the Asian low of 1.2028.

However, the corrective slide appears short-lived, as the bulls are likely to regain poise, as the European traders hit their desks and continue to ride higher on the positive tone carried by the latest ECB meeting minutes released a day before.

Analysts Westpac offered their view on the ECB’s minutes, explaining: “In the interim, from as early as the next policy meeting, a gradual firming of the language used to describe the economy will be seen to slowly ‘make known’ to the market the ECB’s intent. It has to be said though, given the Euro’s gains against the US dollar during the past month, the market looks to have already pre-empted this shift in forward guidance.”

Moreover, the major could also continue to derive support from persisting softness seen in the US dollar across its main competitors, as downbeat US PPI data raise concerns over the consumer prices data due on the cards later today.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank, notes: “EUR/USD continues to see recovery off the 20 day ma at 1.1945. While above here, the market is bid and attention once more reverts to the 1.2092 September high. Below 1.1945 will trigger losses to the 1.1853 uptrend. A rise above 1.2092 will target the 1.2168 50% retracement of the move down from the 2015 high and then the 1.2414 200 month ma.”