EUR/USD fails to move above the swing region resistance of 1.1640-50 once again
The pair gets knocked to session lows on the day, falling to 1.1623 as the dollar sees a little bid of a bid alongside the swissie. The only headline of note is that Italy’s economy/finance minister Tria is reportedly threatening to resign over the budget here.
But for EUR/USD, it’s a familiar story really. As has been the case since last week, the resistance region between 1.1640 to 1.1650 has been a key level that buyers have just been unable to break above.
Although near-term bias remains in their favour, the lack of conviction to move above that is really what is keeping the euro from moving higher at this point. All eyes will now turn to the ECB and Draghi.
Ahead of that, I expect the euro to hold steady as markets gear up for a host of central bank meeting decisions in European trading before US CPI figures come in later at 1230 GMT. In any case, be wary of more Italian headlines on the day that could help kick the euro around before the ECB does later.
For the moment though, EUR/USD appears to be consolidating between the 38.2 retracement level @ 1.1568 and the swing region resistance at 1.1640-50 since Tuesday. That should remain the range ahead of the ECB meeting decision and Draghi’s presser later.