EUR/USD ignores ECB story on QE extension

EUR/USD remains trading within a narrow range, where it has spent the last hours, showing resilience to an ECB story from Bloomberg.

Bloomberg reported Thursday that some ECB policymakers see room to wait until January on QE extension announcement while ECB is likely to send dovish message at Dec 8 meeting. The rise in bond yields has given ECB leeway on QE tweaks and decision.

The shared currency showed no reaction and continues to trade at the 1.0570 area after the latest bounce attempt was capped by the 1.0585 area earlier.

Liquidity is expected to remain thin as US markets are closed in observance of the Thanksgiving Day. While trading might remain subdued, some movements could be exaggerated by low volume.

EUR/USD levels to watch

As for technical levels, immediate resistances could be found at 1.0643 (Nov 23 high), 1.0659 (10-day SMA) and 1.0700 (psychological level). On the flip side, supports seen at 1.0519 (2016 low Nov 24), 1.0500 (Dec 3 2015 low/psychological level) and 1.0470 (Mar 16 2015 low).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.