The demand for the European currency seems to have run out of steam for the time being, sending EUR/USD back to the vicinity of 1.0890, or daily lows.
EUR/USD choppy ahead of ECB
The pair is now losing some momentum after being rejected from daily highs around 1.0920, posting the second consecutive daily pullback amidst rising cautiousness in light of the imminent ECB interest rate decision.
According to prior surveys, there should be no room for surprises at today’s ECB meeting, with rates expected to stay unchanged. The attention, however, will be on the subsequent press conference by President Draghi, where a somewhat hawkish message is expected.
Data wise in the region, several gauges of confidence/sentiment are due in the euro area followed by the more relevant preliminary inflation figures in Germany for the month of April.
In the US calendar, Durable Goods Orders, Pending Home Sales, Initial Claims and Goods Trade Balance figures are all due later in the NA session.
EUR/USD levels to watch
At the moment, the pair is losing 0.05% at 1.0898 and a breach of 1.0855 (low Apr.26) would target 1.0850 (low Apr.25) en route to 1.0837 (200-day sma). On the upside, the next resistance is located at 1.0950 (2017 high Apr.26) followed by 1.1000 (psychological handle) and then 1.1300 (high Nov.9 2016).