EUR/USD off highs, back to 1.1030

After testing highs in the mid-1.1000s, EUR/USD has now faded part of that advance and is now hovering over the 1.1035/30 band.

EUR/USD firmer ahead of ECB

The pair is trading on a firmer fashion during the second half of the week, benefiting from today’s selling mood surrounding the greenback and putting further distance from yesterday’s lows in the 1.0980 region.

Cautiousness remains intact amongst traders however, in light of the key ECB meeting due later in the European afternoon. Market consensus remains biased towards a ‘no action’ by the central bank today, while President M.Draghi is expected to downplay potential implications for the euro bloc of the recent ‘Brexit’ vote.

EUR/USD levels to watch

The pair is now gaining 0.20% at 1.1036 and a breakout of 1.1082 (200-day sma) would target 1.1166 (high Jul.14) en route to 1.1201 (55-day sma). On the other hand, the immediate support aligns at 1.0979 (low Jul.20) followed by 1.0913 (post-Brexit low Jun.24) and then 1.0820 (low Mar.10).

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