EUR/USD catches fresh bid, attempts break above 5-DMA

The bid tone around EUR gathered pace in Asia, pushing EUR/USD higher to 5-DMA level of 1.0644. 

Eyes ECB rate decision

The European Central Bank (ECB) is expected to keep the key rates unchanged. Taper talk remains a taboo; however, the probability of Draghi talking up Euro is high given the sharp rise in inflation in recent days. 

The Dollar side of the story could be influenced by the weekly US initial jobless claims number and monthly housing starts and building permits data. 

EUR/USD Technical Levels

Acceptance above the 5-DMA level of 1.0644 would open the doors to 1.0685 (Jan 12 high). A violation there could yield a rally to 1.0720 (Jan 17 high). On the other hand, a breakdown of support at 1.0622 (session low) would expose 1.06 (zero figure) under which losses could be extended to 1.0579 (Jan 16 low).