EUR/USD fails once again near 1.0785 ahead of ECB

The EUR/USD pair paused its steady upward path and now consolidates near upper bound of today’s trading range, as investors eagerly await the ECB policy decision due later in the session ahead.

EUR/USD: 1.0700 holds key support                                                                

Currently, EUR/USD keeps moderate gains to trade around 1.0772 levels, unable to chew offers lined up near 1.0785/90 region. The main currency pair remains well bid, although pared gains amid improved markets sentiment following upbeat Chinese trade data release, which diminished bids for the funding currency euro.

The sentiment around the major remains underpinned on the back of ongoing weakness seen in the US dollar versus its major peers, as attention now turn their focus towards the ECB monetary policy decision due later in the European session, with markets expecting the central bank to extend its QE programme beyond March 2017. Further, any hints on when the bank would start tapering its asset purchases will be closely eyed.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0798 (3-week highs). A break beyond the last, doors will open for a test of 1.0817 (Nov 15 high) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0700 (round number) below which 1.0676 (10-DMA) and 1.0641 (20-DMA) could be tested.