FXStreet (Mumbai) – The shared currency extends its consolidative phase against the American dollar in the early trades, with EUR/USD struggling to rise above 1.1370 region.
EUR/USD holds above 20-DMA
The EUR/USD pair trades 0.15% higher at 1.1362, capped below key resistance located near 1.1370, confluence of 10-DMA, hourly 100 & 200-SMA. The major tries yet another attempt to break through the side-ways movement seen almost through the Asian session while traders remain cautious ahead of the ECB meeting tomorrow.
The EUR/USD pair keeps the recovery intact from the US housing starts induced troughs near 1.1330, which boosted the ongoing strength in the US dollar. The housing starts rose 1.21 million in Sept versus an expected rise of 1.14 million.
However, every attempt to the upside by the main currency pair faces supply as traders expect the ECB to deliver hints on QE extension/expansion at its meeting tomorrow. Markets are already pricing-in QE extension/expansion as early as this December.
In the day ahead, the major will track the sentiment on the European equities amid a data-dry EUR calendar. While trading will be light ahead of Thursday’s ECB decision.
EUR/USD Technical Levels
The pair struggles below the h1 100 & 200-SMA located near 1.1370 which acts as the immediate resistance, beyond which 1.1400 (round number) would be tested and from there to 1.1413/16 (Oct 13 High + daily R3). While the immediate support is located at 1.1300 (psychological levels), a breach of the last would expose 1276 (50-DMA), below which floors open for a test of 1.1250 (daily S3).
(Market News Provided by FXstreet)