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EUR/USD back to 1.2630

FXStreet (Edinburgh) - The single currency is extending the rebound from the area of 1.2610, now lifting EUR/USD back to the mid-1.2600s.

EUR/USD focus on the ECB

The ECB meeting will be the most relevant event for the EUR this week, with the focus most likely to be on the central bank’s balance sheet and the ABS purchase programme. However, the EUR remains under pressure as recent disappointing results from the CPI and manufacturing PMIs in the region could prompt the ECB to intensify the dovish tone, with the recent fresh ytd low in sub-1.2600 levels as the interim support. “The low of 1.2585 did not reach the target highlighted at 1.2570/75 yesterday. The rebound is likely part of consolidation phase, expect sideway trading between 1.2595 and 1.2655 for today”, suggested Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD key levels

The pair is now advancing 0.05% at 1.2629 and a breakout of 1.2676 (high Oct.2) would aim for 1.2715 (high Sep.29) and then 1.2732 (10-d MA). On the downside, the immediate support aligns at 1.2571 (2014 low Sep.30) ahead of 1.2561 (low sep.6 2012) and finally 1.2502 (76.4% of 1.2042-1.3995).

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