EUR/USD upside stalled near 1.1280, ECB eyed

The shared currency keeps the firm note on Thursday, taking EUR/USD to the 1.1270/80 band, or daily highs.

EUR/USD focus on the ECB

The pair is trading in weekly highs near 1.1280, leaving behind recent highs and one of the retracements of the June-August up move in the 1.1260 area, all propped up by a continuation of the selling bias in the US dollar.

In the meantime, gains in spot appear capped by the resistance trend line off 2016 tops seen in early May, currently around 1.1316, while market participants keep their focus on the upcoming ECB meeting.

Consensus amongst traders point to a somewhat dovish tone at the meeting today and at the subsequent press conference by President M.Draghi, while an extension of the current QE programme beyond March 2017 appears likely a priori.

EUR/USD levels to watch

The pair is now advancing 0.30% at 1.1273 and a break above 1.1316 (resistance line off 2016 high) would aim for 1.1367 (high Aug.18) and then 1.1434 (high Jun.24). On the other hand, the immediate support aligns at 1.1212 (100-day sma) ahead of 1.1192 (2014-2016 support line) and finally 1.1138 (200-day sma).