EUR/USD off 2-month lows, back around 1.2175 ahead of ECB
- Holds above 1.2150 as USD eases-off three-month tops.
- ECB decision to provide fresh direction to the common currency.
The EUR/USD pair enjoys good two-way trading so far this Thursday, as the rates remain supported ahead of March lows while the bears continue to guard the 1.22 barrier ahead of the European Central Bank (ECB) monetary policy decision.
Over the last hour, the US dollar index faded a spike to fresh three-month tops of 91.32 to now trade near its opening price of 91.19. The latest leg down in the buck is the main reason that prompted the bounce in the spot from two-month troughs of 1.2157.
Moreover, the funding currency, the EUR, continues to find some support from the cautious tone seen around the European equities, as markets turn risk-averse following the slump in China stocks.
Looking ahead, the spot is likely to maintain its range-play, with risks skewed to the downside ahead of the ECB decision, as markets expected the ECB President Draghi to deliver downbeat remarks on the Euro area economic outlook while maintaining the status-quo.
EUR/USD levels to watch
FXStreet’s Analyst, Yohay Elam notes: “The $1.2155 level is a critical line of support. The pair got close to this level early in the day but refrained from making the break. This is the low on March 1st. A break to lower ground will send the pair to the weakest since early January. Further support awaits at $1.2090, the peak of 2017. The very round level of $1.2000 is next down the line. Looking up, $1.2210 supported the pair on April 8th and $1.2240 cushioned a fall in March. The 50-day Simple Moving Average awaits at $1.3222.”