EUR/USD keeps gains around 1.0730

EUR/USD keeps the narrow range around 1.0730 area in the middle of the week amidst a generalized lack of direction in the global markets.

EUR/USD gains capped near 1.0800

Spot keeps the buoyancy intact on Wednesday, finding good support in the boundaries of the 1.0700 handle while gains appear so far capped in the vicinity of 1.0800 the figure.

Adding to the sideline theme, cautiousness is expected to grow bigger ahead of the ECB meeting due tomorrow, with rumours on the potential extension of the QE programme beyond March 2017 picking up extra pace among investors.

On the positioning front, EUR remains under pressure as speculative longs have climbed to the highest levels since October 2013, while net shorts climbed to 3-week tops during the week ended on November 29 following the latest CFTC report.

On the data front, US Mortgage Applications contracted 0.7% during the week ended on December 2. Later in the session, JOLTs Job Openings are due ahead of the EIA’s report on crude inventories.

EUR/USD levels to watch

The pair is now up 0.14% at 1.0733 and a break above 1.0798 (high Dec.5) would target 1.0815 (38.2% of the November drop) en route to 1.0848 (low Oct.25). On the flip side, the immediate support aligns at 1.0503 (2016 low Dec.5) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003).