FXStreet (Edinburgh) – After bottoming out in the 1.0870 area during overnight trade, EUR/USD has managed to pick up pace and is now surpassing the 1.0900 handle.

EUR/USD firmer pre-European open

The pair is now looking to consolidate the breakout of the 1.0900 handle ahead of the opening bell in London, bolstered by some risk-off trade coming back to the markets.

In the meantime, spot navigates unaltered the 1.07-1.10 range waiting for today’s ECB meeting. Market expectations of any change of the monetary policy remain close to zero, although Draghi’s press conference could bring in some volatility, especially amidst the collapse of crude oil prices and the stagnant inflation figures in the euro region.

EUR/USD levels to watch

The pair is up 0.16% at 1.0909 and a break above 1.0987 (high Jan.15) would target 1.0994 (100-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0860 (61.8% Fibo of 1.0538-1.1059) followed by 1.0709 (low Jan.5) and then 1.0538 (low Dec.3).

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After bottoming out in the 1.0870 area during overnight trade, EUR/USD has managed to pick up pace and is now surpassing the 1.0900 handle…

(Market News Provided by FXstreet)

By FXOpen