Brocker.Org: EUR/USD looks sidelined near 1.09, ECB eyed

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The single currency is alternating gains with losses vs. its American counterpart on Thursday, taking EUR/USD to a consolidative theme around 1.0900 the figure ahead of the ECB meeting.

EUR/USD focus on ECB

The pair has quickly recovered from yesterday’s dip to daily lows in the 1.0860 region, although a sustainable breakout of the 1.0900 handle appears elusive for the time being.

In fact, cautiousness among traders is set to prevail in the very near term in light of the upcoming ECB gathering. Market consensus appears biased towards a hawkish tone from President Draghi, who is seen emphasizing the growth prospects for the region following recent data.

In addition, several gauges of confidence/sentiment are also due in the euro area followed by the more relevant advanced German inflation figures for the current month.

Across the pond, markets stayed apathetic after the recent tax reform announced by the White House. In the data space, Durable Goods Orders, Pending Home Sales, Initial Claims and Goods Trade Balance figures are all due in the US calendar.

EUR/USD levels to watch

At the moment, the pair is gaining 0.01% at 1.0905 facing the next hurdle at 1.0950 (2017 high Apr.26) followed by 1.1000 (psychological handle) and then 1.1300 (high Nov.9 2016). On the flip side, a breach of 1.0855 (low Apr.26) would target 1.0850 (low Apr.25) en route to 1.0837 (200-day sma).

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