EUR/USD jumps above 1.17 on ECB headlines

• EUR/USD quickly recovered its losses and broke above the 1.17 mark.
• The ECB is said to have a live discussion of a possible QE exit in its next meeting.
• DXY erased its daily gains to turn red below 94.

After plummeting to a 5-day low near mid-1.16s during the early trading hours of the NA session, the EUR/USD pair reversed course and retraced its downside to turn positive above the 1.17 mark. As of writing, the pair was trading at 1.1720, adding 0.18% on the day.

The pair's recent upsurge seems to be a product of a sudden increase in the demand for the shared currency. According to a Bloomberg report, the ECB officials will be having a live discussion on a possible QE exit strategy on June 14 when they have their next monetary policy meeting. Although this report hasn't been confirmed by any official sources, it was enough for the euro to gather strength against its rivals.

On the other hand, the upbeat service sector PMI data released by Markit Economics and the ISM today helped the US Dollar Index rise above the 94 mark. However, with investors' attention shifting toward the euro, the DXY lost its traction and was last seen at 93.85, where it was down 0.18% on the day.

Technical outlook

The immediate resistance for the pair aligns at 1.1745 (Jun. 4 high) ahead of 1.1830 (May 22 high) and 1.1900 (psychological level). On the downside, supports could be seen at 1.1650 (daily low), 1.1605 (May 28 low) and 1.1500 (psychological level).