EUR/USD clinches highs near 1.0670 ahead of ECB

Fresh bids emerged for EUR/USD near 1.0630 region, providing extra legs to the ongoing recovery from 10-DMA located at 1.0621.

EUR/USD: ECB meeting likely to emerge uneventful

Currently, the spot now gains +0.32% to trade at 1.0663, making headways towards 1.07 handle. The EUR/USD pair extends its advance, as the greenback extends its broad based retreat from Fed Yellen’s hawkish remarks induced rally witnessed in early Asia.  

More so, a short-covering rally in EUR/USD cannot be ruled after yesterday’s slump, as investors gear up for the ECB monetary policy decision due later in mid-Europe. The central bank is expected to make no changes to its key monetary policy tools today, while more dovish tilt could be anticipated from Draghi’s speech, as he seeks to explain markets that reduction in asset purchases does not constitute tapering.

Focus also remains on the US dataflow, including building permits, jobless claims and Philly Fed manufacturing index lined up release later 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 1.0621 (20-DMA) below which 1.0600 (zero figure) and 1.0555 (50-DMA) could be tested.