EUR/USD firmer, but stays below 1.1050 ahead of ECB

A renewed spurt of buying seen behind the euro waned, now pushing EUR/USD away from the mid-point of 1.10 handle.

EUR/USD surpasses Wednesday’s highs

Currently, EUR/USD now +0.17% higher at 1.1033, deflating from session tops reached at 1.1044 an hour earlier. The main currency pair caught a fresh bid tone as risk sentiment deteriorated somewhat after the Japanese stocks turned lower, before meeting fresh supply just shy of 1.1050.

The EUR/USD pair continues to waver above 1.10 handle, and looks for a fresh direction from the upcoming ECB monetary policy decision. Markets are pricing-in some tweaks in the central bank’s QE program and would want to remain in a wait-and-see mode, as it assesses the impact of the Brexit vote.

Going forward, the major may also take cues from the US unemployment claims, existing home sales and Philly Fed manufacturing index, lined up for release later in the NA session.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1089/1.1100 (200-DMA/ round number). A break beyond the last, doors will open for a test of 1.1169 (50-DMA). On the flip side, the immediate support is placed at 1.1000 (key support) below which 1.0950 (psychological levels) could be tested.