FXStreet (Mumbai) – The EUR/USD pair stalled its overnight slide and continues to consolidate in a few pips range since mid-Asia, with every attempt to the upside sold-off at 1.06 barrier.
EUR/USD: Stuck below 5-DMA at 1.0597
Currently, the EUR/USD pair trades -0.22% lower at 1.0590, consolidating the drop from 1.0630 region. The main currency pair remains capped below 1.06 handle over the past few hours, and is seen consolidating in a tight range heading towards Europe.
The major maintains the offered tone ahead of the crucial ECB decision due later today, with the EUR under pressure on growing speculation surrounding the extent of additional stimulus (10 or 15 bps deposit rate cut/ QE expansion) likely to be rolled out by the central bank in the upcoming session.
The euro-dollar pair also weakens as markets continue to bid up the greenback in wake of Yellen’s latest comments and anticipation of stronger NFP report. The USD index rises 0.15% to 100.20, eyeing for a retest of fresh twelve year highs at 100.54 reached on Wednesday.
Meanwhile, a series of final services PMI reports from across the Euro area and the bloc’s retail trade data will be reported ahead. Although, the ECB decision is expected to remain the major market mover for this Thursday.
EUR/USD Technical Levels
The pair remains capped by 1.06 handle, with the immediate support seen at 1.0558 (Nov 30 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April Low). While to the upside the next hurdle in sight is located at 1.0609 (10-DMA) and from there to 1.0644/57 (Dec 2 High/ 20-DMA).
(Market News Provided by FXstreet)