EUR/USD eases from highs, near 1.0660 ahead of ECB

After reaching daily highs around 1.0670, EUR/USD has now lost some upside feeling and has returned to the 1.0655/50 band.

EUR/USD eyes on the ECB

The pair has resumed its weekly upside today, finding support around overnight lows near 1.0620 and with gains so far capped in the boundaries of 1.0670.

In the meantime, the greenback is fading part of Wednesday’s advance, challenging the key support at 101.00 the figure when tracked by the US Dollar Index (DXY).

Spot keeps the upbeat tone ahead of ECB meeting due later. Consensus among market participants sees the European Central Bank maintaining its monetary status quo unchanged at today’s meeting, while Draghi’s tone could be tilted to the neutral side albeit highlighting the recent pick up of inflation in the region.

Data wise across the pond, Initial Claims are due along with Building Permits, Housing Starts, the Philly Fed Manufacturing Index and the DoE’s weekly report on crude oil inventories.

EUR/USD levels to watch

The pair is now up 0.26% at 1.0658 and a breakout of 1.0719 (high Jan.17) would open the door to 1.0798 (high Dec.5) and then 1.0873 (high Dec.8). On the flip side, the immediate support aligns at 1.0622 (low Jan.19) followed by 1.0577 (low Jan.16) and finally 1.0563 (near-term support line).