$EUR/USD treading water below 1.1600

As the critical ECB meeting looms, $EUR/USD seems to find itself quite comfortable around the 1.1570/80 band.

$EUR/USD keeps the range

Empty docket in Euroland today prompted investors to concentrate their attention to the ECB gathering due tomorrow. Despite recent rumours citing the likeliness that the ECB could not ‘deliver’ the QE programme, speculations remain high and are somehow sustaining the current sideline pattern in the pair around 1.1580/70.

Against the backdrop of the so-much-talked ECB’s QE, Senior Analyst at Danske Bank Christin Tuxen assessed, “Provided the ECB announces an aggressive QE scheme, this should deliver EUR downside now, rather than later. Coupled with our view that the Fed will hike mid year but that the potential for upside to rates will be limited beyond 6M, this suggests that EUR/USD will see downside concentrated in H1”.

$EUR/USD key levels

As of writing the pair is up 0.24% at 1.1579 with the next resistance at 1.1615 (high Jan.20) followed by 1.1639 (high Jan.19) and then 1.1649 (high Jan.16). On the downside, a break below 1.1528 (61.8% of 1.1460-1.1639) would aim for 1.1460 (11-year low Jan.16) and finally 1.1445 (low Nov.11 2003).