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EUR/USD extends the spike to 1.0750

FXStreet (Edinburgh) - The common currency is now rapidly extending its upside vs. the dollar, lifting EUR/USD to the mid-1.0700s, fresh highs.

EUR/USD firmer ahead of Draghi

The pair has reverted its initial offered bias, advancing nearly two big-figures following today’s rate decision by the European Central Bank. It is worth recalling that the central bank left unchanged both its Marginal Lending Facility and the rate on the Main Refinancing Operations at 0.30% and 0.05%, respectively, while it has lowered the Deposit Facility Rate by 10 bp to -0.30%.

Markets attention has now shifted to the press conference by Mario Draghi, expected to shed further details on today’s unexpected decision, with the QE programme likely to take centre stage.

EUR/USD levels to watch

As of writing the pair is up 0.58% at 1.0676 and a break above 1.0805 (monthly lows May and July) would expose 1.0829 (high Nov.12) and then 1.0998 (55-day sma). On flip side, the next support lines up at 1.0519 (low Apr.13) en route to 1.0500 (psychological level) and then 1.0456 (2015 low Mar.16).

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