EUR/USD wobbles around 1.1100, BoE on sight

The European currency keeps its daily gains vs. the dollar on Thursday, with EUR/USD meandering a narrow range around the 1.1100 mark.

EUR/USD upside capped near 1.1130

Spot is once again extending its consolidative theme in spite of the improved tone surrounding the risk-associated assets and with the up move struggling to break above 1.1100 on a more sustainable fashion.

It seems that as long as the pair trades below 1.1216 (uptrend off March’s low, previous support now resistance) the bearish bias seems to prevail, allowing at the same time a potential re-visit to the 1.0820 region.

Nothing worth mentioning data wise in the euro area, whereas all the attention will be on the upcoming BoE’s MPC meeting. The shared currency will remain under pressure via EUR/GBP, with market consensus seeing the central bank lowering its benchmark rate to 0.25%.

EUR/USD levels to watch

The pair is now gaining 0.12% at 1.1103 facing the next hurdle at 1.1143 (20-day sma) followed by 1.1184 (high Jul.5) and finally 1.1200 (base of the 6-month rising channel). On the other hand, a breakdown of 1.0999 (low Jul.8) would open the door to 1.0913 (post-Brexit low Jun.24) and then 1.0820 (low Mar.10).