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EUR/USD: quiet before the ECB storm?

FXStreet (Guatemala) - EUR/USD is currently trading at 1.1359 with a high of 1.1368 and a low of 1.1343.

EUR/USD has been drawn to the 200 SMA on the hourly sticks like a magnet with little impetus in overnight markets while the calendar has been particularly light. That said, we have the ECB coming up this week and this could be when things start to get interesting. Not that it is expected that the Central Bank will make a move this week, but a dovish tone could set off the supply in the major on the basis that an expansion of the asset purchase program is the most likely step from the ECB in time to come.

However, Senior Analyst at Danske Bank Christin Tuxen, notes that they see EUR/USD trading around 1.10 and 1.16 in the coming months and at 1.20 in 12 months.

EUR/USD levels

Technically, the failures of last week on the bid at the 1.1440/72 band (May, June and September highs, the 55 week ma and the 2014-2015 downtrend), are leaving the major in a bearish phase. The 1.1260/51 cloud lows is now open for a testing and the September lows at 1.1105/1.1088 could come under pressure.

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