EUR/USD cautious, near 1.1330

FXStreet (Edinburgh) - The shared currency remains in a cautious mode vs. the greenback today, with EUR/USD navigating the lower end of the daily range near 1.1330 so far.

EUR/USD weaker ahead of ECB

Spot keeps meandering a tight range since Monday, as market participants remains wary of the potential dovish tone by Mario Draghi at his press conference today.

The prevailing bias in the Q&A session could most likely test the ability (willingness?) of the Council to modify the ongoing bond-buying programme, either via an extension beyond mid-September 2016 or by increasing the size of the monthly purchases, currently at €60 billion.

Further releases will see the preliminary Consumer Confidence in the euro region for October (-7.4 exp.), US Initial Claims, Existing Home Sales and the Chicago Fed NAI.

EUR/USD relevant levels

As of writing the pair is retreating 0.02% at 1.1337 and a breakdown of 1.1315 (23.6% Fibo of 1.3992-1.0463) would target 1.1255 (55-day ma) en route to 1.1181 (100-day ma). On the flip side, the next hurdle lines up at 1.1438 (downtrend from May’14 top) followed by 1.1500 (psychological handle) and then 1.1714 (high post-PBoC move Aug.24).

Denmark Consumer Confidence fell from previous 5 to 3 in October

Denmark Consumer Confidence fell from previous 5 to 3 in October
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EUR/USD: Market pricing action in today's ECB meeting - BofAm

Bank of America notes that the premium priced into EURUSD and USDJPY vol and skew suggests that the market anticipates further action or hints of action from both the ECB and BOJ meetings.
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