FXStreet (Córdoba) – After printing fresh cycle lows, EUR/USD was confined to trade within a narrow range during the American afternoon as investors take a cautious stance ahead of the ECB meeting on Thursday and the US nonfarm payrolls report on Friday.
While the ECB is expected to cut the deposit rate and/or to expand its QE programme, investors will be closely watching the US employment report for reassurance that the Fed will raise rates at its December 15-16 meeting. This divergency of policies is likely to keep EUR/USD under pressure, with 2015 lows in sight.
In the meantime, EUR/USD has enjoyed a quiet session, with the pair currently trading at 1.0567, 0.18% below its opening price, having bottomed out at 1.0557.
EUR/USD technical levels
As for technical levels, if EUR/USD breaks below 1.0557 (7-month low Nov 30), next supports are seen at 1.0520 (Apr 13 low), 1.0500 (psychological level) and 1.0462 (2015 low Mar 13). On the flip side, short-term resistances could be faced at 1.0635/37 (10-day SMA/Nov 27 high), 1.0700 (psychological level) and 1.0762 (Nov 19 high).
(Market News Provided by FXstreet)