EUR/USD treading water around 1.0580

By FXStreet FXStreet (Edinburgh) – The single currency remains entrenched into the negative territory on Friday, with EUR/USD meandering the 1.0585/80 band so far.

EUR/USD weaker ahead of ECB

The pair has tested the area of 7-month lows around 1.0560 earlier in the day, although it has managed to stage a small rebound to the current 1.0580/85 area afterwards, where it is now trying to hold.

However, the euro remains vulnerable and exposed to further pullbacks in light of the ECB meeting next week, where consensus amongst traders see the door open for further easing by the central bank, either by cutting the deposit rate or by modifying the current QE programme (or a combination of both).

EUR/USD levels to watch

The pair is retreating 0.20% at 1.0585 with the immediate support at 1.0519 (low Apr.13) ahead of 1.0500 (psychological handle) and then 1.0456 (2015 low Mar.16). On the upside, a break above 1.0829 (high Nov.12) would pave the way for 1.1050 (200-day sma) and finally 1.1072 (100-day sma).
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Source:: FX Street