EUR/USD better bid near 5-DMA ahead of ECB

EUR/USD keeps the bid tone intact, although moved-off highs, as the USD selling loses steam heading towards the European opening bells.

EUR/USD awaits ECB for next direction

Currently, the spot now gains +0.08% to trade around 1.0638/40 levels, testing daily tops scored at 1.0645 earlier on the day. The EUR/USD pair steadies in early Europe, after having caught a fresh bid-wave last hours, as markets turn cautious and refrain from placing any directional bet on the EUR ahead of key risk event for today – the ECB monetary policy decision.

The shared currency appears to pay little heed to the divergent monetary policy outlook between the Fed and ECB, brought back into the spotlight after Fed Yellen’s hawkish comments, as all eyes remain on Draghi and his team for fresh insights on the future policy course of the ECB.

Recall that yesterday’s slightly upbeat Eurozone inflation data also continues to provide some support the spot, while the US CPI figures failed to impress. Next on tap remains the ECB event, followed by US building permits, jobless claims and Philly Fed manufacturing index due to be reported in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0719 (multi-week high). A break beyond the last, doors will open for a test of 1.0746 (Nov 17 high) and from there to 1.0770 (100-DMA). On the flip side, the immediate support is placed at 1.0618 (20-DMA) below which 1.0600 (zero figure) and 1.0555 (50-DMA) could be tested.