A fresh bid-wave caught the EUR/USD pair at Tokyo-open, and drove the rate back to 1.10 handle, before meeting fresh supply at the last to now trade near 5-DMA.
EUR/USD capped below 1.1000
Currently, EUR/USD is seen defending the bids near 5-DMA, now located at 1.0980, as the major came under renewed selling pressure after the bulls ran into 1.10 resistance
Moreover, the US dollar stalled its downslide and attempts a minor corrective bounce against most of its major rivals, exerting additional downward pressure on the spot.
Focus now remains on the ECB policy decision due tomorrow, with the ECB expected to remain in a wait-and-see mode to assess the impact of its current policy setting. The ECB will also publish new staff forecasts.
In the meantime, markets will look forward to the US housing data and Fed’s Beige book for further hints on the US interest rates outlook.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.1000 (daily high). A break beyond the last, doors will open for a test of 1.1050 (psychological levels) and from there to 1.1072 (Oct 12 high). On the flip side, the immediate support is placed at 1.0964 (Oct 17 low) below which 1.0950 (multi-month lows) and 1.0900 (round figure) could be tested.
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