FXStreet (Córdoba) – The US dollar is taking a breather to consolidate intraday gains versus the euro, with EUR/USD trading a hundred pips below yesterday’s highs.
EUR/USD came under pressure on Thursday and retreated from its monthly highs above 1.1000, sliding to as low as 1.0924 before finding support. At time of writing, the pair is trading at 1.0949, down 0.68% on the day.
Despite recent corrective bounce in EUR/USD triggered by ECB not-so-aggressive-easing last week, EUR/USD continues to trade in the context of a longer-term structural decline amid divergent monetary policy outlooks. While the ECB cut further its deposit rate and extended its QE program until March 2017, the Federal Reserve is expected to raise rates for first time since the crisis began when it meets next week.
EUR/USD levels to consider
As for technical levels, next supports could be faced at 1.0878 (Dec 9 low), 1.0829 (Dec 8 low), 1.0795/91 (Dec 7 low/10-day SMA). On the other hand, resistances line up at 1.1030 (200-day SMA), 1.1041 (Dec 9 high) and 1.1060 (100-day SMA) ahead of 1.1100 (psychological level).
(Market News Provided by FXstreet)