EUR/USD sidelined around 1.1820/30 ahead of ECB

  • The pair keeps the area of daily highs in the 1.1820/30 band.
  • All the attention remains on the ECB meeting later in the day.
  • US Retail Sales, Initial Claims next of relevance in the US docket.

The better tone around the single currency is now prompting EUR/USD to stay rangebound in the upper end of the range ahead of the ECB event.

EUR/USD looks to ECB

The pair is advancing for the second session in a row today, moving above the 1.1800 milestone on the back of some selling bias around the greenback after yesterday’s FOMC meeting.

Spot is now sidelined above 1.1800 following the usual pre-ECB cautiousness. In fact, speculations over today’s meeting have been gyrating on the likelihood of some sort of announcement regarding QE tapering and the potential first rate hike by the central bank, particularly after several ECB officials advocated for an end of the bank’s bond buying programme at some point by year-end.

Earlier in the session, German and French final inflation figures for the month of May matched the preliminary readings. Across the pond, May’s Retail Sales will be in the limelight seconded by Initial Claims and Export/Import Prices.

EUR/USD levels to watch

At the moment, the pair is up 0.29% at 1.1825 and a breakout of 1.1840 (high Jun.7) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14). On the downside, the initial support aligns at 1.1756 (10-day sma) seconded by 1.1728 (21-day sma) and finally 1.1617 (low Jun.1).

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