EUR/USD firmer near 1.1260 ahead of ECB

The single currency is recovering part of yesterday’s losses and is now pushing EUR/USD to the mid-1.1200s ahead of the ECB meeting.

EUR/USD looks to ECB

Choppy week for the pair so far, fading the spike to recent tops in the 1.1270 area (Wednesday) following a better tone in the greenback.

Positive results from the Chinese external sector released earlier in Asia have given extra oxygen to the risk appetite trends, lifting spot to the current 1.1250/55 band amidst increasing cautiousness in light of the upcoming ECB meeting.

Consensus expects the central bank to refrain from making significant changes to its monetary stance, although bets have been increasing on the potential extension of the current QE programme beyond March 2017.

EUR/USD levels to watch

The pair is now advancing 0.16% at 1.1257 and a break above 1.1271 (high Sep.7) would target 1.1316 (resistance line off 2016 high) and then 1.1367 (high Aug.18). On the other hand, the immediate support aligns at 1.1212 (100-day sma) ahead of 1.1192 (2014-2016 support line) and finally 1.1138 (200-day sma).