EUR/USD finds support near 1.1510

After testing session lows in the vicinity of 1.1510 on Wednesday, EUR/USD met some buyers and is now hovering over the 1.1535/40 band.

EUR/USD wary ahead of the ECB

After three consecutive daily advances including fresh cycle highs in the 1.1580 region (Tuesday), spot is now retreating moderately against the backdrop of a better tone around the greenback.

It is worth mentioning that the US Dollar Index (DXY) plummeted to levels last seen in September 2016 near 94.20 in response to another rejection of the ‘Trumpcare’ bill by Republicans during the Asian session on Tuesday. The pressure around the buck stays unabated, however, in spite of the ongoing rebound to the 94.50/60 band.

Looking ahead, EUR should stay vigilant on tomorrow’s ECB meeting amidst rising speculations of some kind of announcement regarding the bond-buying programme, which in turn have been sustaining the pair’s upbeat sentiment as of late.

Nothing scheduled data wise in Euroland today, whereas building permits, housing starts and the EIA’s weekly report on US crude oil inventories are all expected across the pond.

EUR/USD levels to watch

At the moment, the pair is losing 0.16% at 1.1535 facing the immediate support at 1.1515 (low Jul.19) seconded by 1.1453 (10-day sma) and finally 1.1375 (21-day sma). On the upside, a breakout of 1.1583 (high Jul.18) would target 1.1616 (2016 high May 3) en route to 1.1713 (monthly high Aug.24).

In addition, the daily RSI (14) is slightly below the overbought area today (currently at 67), while the MACD stays unchanged in the bullish territory. Spot is expected to keep the constructive tone while above the near-term support line, today at 1.1312.