Flash: EUR/USD capped by converging SMA's - TD Securities

FXstreet.com (Córdoba) - The EUR is trading lower along with the rest of the majors against the USD, although some headlines that the ECB could begin releasing forward guidance on Thursday has added to the heavy tone, says the TD Securities analyst team.

"Overall, EURUSD looks to be a range trade for now, but we ultimately expect lower levels in the coming months as policy divergence becomes more apparent", TD says. "Yesterday's rally was halted by the key resistance zone marked by the confluence of key moving averages (50-, 100-, and 200-DMAs) in the 1.0370/80 area. In the short term that should hold the upper end of the range".