EUR/USD stuck in range near 1.1260 ahead of ECB, Comey

Having witnessed a volatile session a day before, the EUR/USD pair steadies so far this ‘Super Thrusday’, as markets await the ECB decision and Comey’s testimony for fresh impetus.

EUR/USD to remain cautious ahead of ‘Super Thursday’

The major is seen moving back and forth in a 15-pips narrow range, with the upside capped near 5-DMA barrier located at 1.1265, while the downside finds support just ahead of 10-DMA of 1.1241.

The range-trade seen in EUR/USD today, can be mainly attributed to a wait-and-see approach adopted by markets ahead of the key risk events - the UK general election, fired FBI director Comey’s testimony and ECB monetary policy decision. Investors prefer to remain on the side-lines and refrain from placing any directional bets on the spot, as the aforementioned events are likely to generate massive volatility.

The ECB policy decision will remain the main market driver for the Euro today, especially after recent headlines cited that the ECB is said to cut inflation forecasts through 2019. Moreover, markets are expecting Draghi to sound more dovish during his presser and could down play economic prospects, closing door for withdrawal of the stimulus program anytime soon.

Meanwhile, the USD dynamics will also play a crucial role, in the wake of Comey’s testimony and usual jobless claims release later in the NA session.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank noted: “EUR/USD continues to struggle at 1.1300: The Euro continues to hold below the 1.1300 November 2016 high, and has eroded the accelerated uptrend. The near term risk is that losses will extend to the 2 month uptrend at It will remain bid while above the near term uptrend at 1.1101.We note the divergence of the daily RSI and the daily Elliot wave count, which is suggesting that we allow for a retracement back to circa 1.1010. This guards the 200 day ma at 1.0823.”