EUR/USD in a tight range near 1.1370

The shared currency is trading almost unchanged vs. its American counterpart at the beginning of the week, takingEUR/USD to the 1.1370 area.

EUR/USD gains capped near 1.1450

The pair has faded yesterday’s spike to fresh 2016 peaks in the mid-1.1400s following dovish comments by Draghi and other ECB officials on Thursday.

However, the main driver behind the ongoing EUR rally continues to be the USD-dynamics, as market participants keep adjusting to the new Fed’s projected rate path for the current year.

EUR/USD levels to watch

The pair is now down 0.08% at 1.1369 and a break below 1.1325 (low Apr.6) would target 1.1291 (23.6% Fibo of 1.0820-1.1437) en route to 1.1276 (20-day sma). On the other hand, the initial hurdle aligns at 1.1454 (2016 high Apr.7) ahead of 1.1496 (monthly high Oct.15 2015) and then 1.1713 (high Aug.24 2015).