EUR/USD Holds Above 1.1700 Ahead of ECB Meeting
The Euro is modestly stronger on the session as traders anticipate no change in rates this week from the European Central Bank.
EUR/USD traded with mild downward pressure today as market focus stays squarely on macroeconomic news. A mixed U.S. labor market picture, with job growth present but unemployment rising, has left the greenback somewhat bid in the first half of Wednesday. The Euro continues to benefit from expectations that the European Central Bank will hold rates steady, in contrast to markets pricing further Federal Reserve easing next year. With the Dollar Index near multi-month lows, EUR/USD remains sensitive to shifts in sentiment around U.S. policy and data.
EUR/USD Daily Price history
In the above chart, EUR/USD rates have started to settle in above 1.1700, holding the mid-October swing high as support during the recent meander. While then pair was rejected at 1.1800 yesterday, the 5-day exponential moving average (EMA) has proved as support, suggesting short-term momentum remains firm. Some traders may see an inverse head and shoulders pattern or a cup and handle in price action over the past three months; either way, both interpretations suggest that EUR/USD has bottomed and the path of least resistance is higher in the near-term.
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