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EUR/USD off lows, nervous ahead of ECB

FXStreet (Moscow)- EUR/USD started the day at 1.2616 and managed to climb towards 1.2656 without any special reason for the upside except for USD downside correction across the board

Caution! Draghi is speaking!

It’s all about ECB monetary policy meeting for EUR today. Diverging central-bank policies in Europe and in USD push U.S. Treasury yields higher, while German counterparts dipped below 1% - first time ever. The spread between US-German yields is the highest since 1999. While ECB is expected to keep interest rates unchanged, investors are waiting for dovish comments and hints on true QE from Draghi. If he the President lives up to expectations, EUR/USD might drop to fresh lows at 1.2590. If this support holds the initial test, the pair might start consolidating losses. Though, once we are below it, 1.2530 will come into view. The upside is likely to be limited by 1.2650 (option barrier).

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.2616, with support below at 1.2591, 1.2560, and 1.2635, with resistance above at 1.2647, 1.2672 and 1.2703. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2744 and the daily 20EMA bearish at 1.2849. Hourly RSI is bullish at 65.

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