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3 Sep 2015
EUR/USD wipes-out gains, recedes to 1.1220 ahead of ECB
FXStreet (Mumbai) - The EUR/USD pair failed to sustain the EZ PMIs-led gains and retreated to the familiar range near 1.1220 levels as the EUR,GBP traders gear up for the ECB event due later shortly.
EUR/USD capped below 1.1250
The EUR/USD pair trades modestly flat at 1.1223, facing rejection at 1.1243 session highs. The major trades in 50 pip narrow range during the European session, awaiting the outcome of the ECB meeting and Draghi’s speech at the press conference.
Moreover, persisting risk sentiment further boosted by strengthening European indices, continue to favour the newly crowned risk currency – US dollar, negatively weighing on the EUR/USD pair.
Focus now shifts back towards the European Central Bank (ECB) meeting with markets expecting a clear dovish bias from the ECB policymakers in light of the recent financial market turmoil and persisting lower EZ inflation levels.
Markets further expect that the central bank may talk down the currency in a bid to combat softer inflation.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1264 (Aug 31 High), above which gains could be extended to 1.1309 (Aug 28 Low), levels. On the flip side, support is seen at 1.1205 (Today’s Low) below which it could extend losses to 1.1159 (Aug 31 Low) levels.
EUR/USD capped below 1.1250
The EUR/USD pair trades modestly flat at 1.1223, facing rejection at 1.1243 session highs. The major trades in 50 pip narrow range during the European session, awaiting the outcome of the ECB meeting and Draghi’s speech at the press conference.
Moreover, persisting risk sentiment further boosted by strengthening European indices, continue to favour the newly crowned risk currency – US dollar, negatively weighing on the EUR/USD pair.
Focus now shifts back towards the European Central Bank (ECB) meeting with markets expecting a clear dovish bias from the ECB policymakers in light of the recent financial market turmoil and persisting lower EZ inflation levels.
Markets further expect that the central bank may talk down the currency in a bid to combat softer inflation.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1264 (Aug 31 High), above which gains could be extended to 1.1309 (Aug 28 Low), levels. On the flip side, support is seen at 1.1205 (Today’s Low) below which it could extend losses to 1.1159 (Aug 31 Low) levels.