EUR/USD on the back foot ahead of ECB week

Dhwani Mehta FXStreet

Having peaked at 1.1475, the EUR/USD pair ran through fresh sellers in the Asia session, as a renewed risk-on wave gripped the markets on upbeat Chinese data dump, which dampened the sentiment around the funding currency Euro.

EUR/USD awaits ECB for fresh direction

The main currency pair also remains under pressure amid holiday-thin trading, with the US dollar trying to regain footing across the board, after Friday’s disappointing US dataflow, including softer CPI figures that poured cold water on the Fed rate hate hike expectations.

Also, the upside in the EUR/USD pair remains capped, as Friday’s ECB headlines, citing that the central bank remains wary of putting an end-data in its QE asset purchases program, continues to dent the sentiment around the common currency.

Looking ahead, the main risk event for the major will remain the ECB monetary policy decision due later this week, which will provide fresh insights on the ECB’s tapering plans. Meanwhile, markets look forward to the Eurozone final CPI and Empire State manufacturing index due later today for fresh trading impetus.

EUR/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet, “In the 4 hours chart, the price settled above its 20 SMA, whilst technical indicators advanced above their mid-lines, also supporting additional gains on a break above 1.1490, the yearly low and immediate resistance. Support levels: 1.1420 1.1380 1.1340 Resistance levels: 1.1490 1.1525 1.1560.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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