EUR/USD: consolidated at key levels ahead of ECB

By FXStreet FXStreet (Guatemala) – EUR/USD is currently trading at 1.1380 with a high of 1.1400 and a low of 1.1334.

EUR/USD is looking set to close the week within the parameters of the 200 SMA and the 50 SMA on the hourly sticks with a bearish bias within the broader bullish trend this week. The lofty levels of just shy of the 1.1500 were too much to expect from the bulls this week after a steady run from below the 1.12 handle.

This week was a sell on the dollar, but next comes with the ECB. Analysts at TD Securities said, “We expect expanded and extended QE (to €80bn/month until Dec-16) and possibly a depo rate cut to be announced by the end of the year, so there’s a risk of jawboning by Draghi at the press conference to help prepare markets for this, particularly after ECB hawk Nowotny declared that “additional sets of instruments are necessary” to meet the inflation target.”

EUR/USD levels

Technically, EUR/USD formed a bearish reversal day on yesterday and Karen Jones, chief analyst at Commerzbank explained, “Thursday’s high at 1.1495 is thus considered to be another interim top. It needs to slip below 1.1315 to retarget the 1.1260/45 cloud …read more

Source:: FX Street