Technical Analysis

EUR/USD retests the week’s high to kick start the session

EUR/USD moves to a session high of 1.0891

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Major currencies are trading more tepid to start the European morning, but the euro is gaining some light ground against the dollar as we see price push up to a high of 1.0891 after hovering around 1.0860 levels earlier.

Notably, price is running into the same resistance region around 1.0880-00 from earlier this week and is testing the highs on Tuesday at 1.0888. There is also added resistance from the 61.8 retracement level @ 1.0890 to be mindful about.

For the euro, it is all about the ECB today. There is going to be a slew of poor economic data releases up until then but the central bank policy meeting is the key thing to watch.

The euro is hoping that the ECB will deliver added stimulus by possibly expanding the PPP later today, to help resolve fears in the bond market (to narrow the spread) and alleviate economic and financial pressures as well.

However, the ECB is expected to stand pat in today’s meeting. So, there’s that to consider in case euro buyers try to front run the announcement in the coming hours.

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