EUR/USD: A phase of downside consolidation ahead of ECB

The EUR/USD pair is seen hovering in close proximity to three-month troughs, with every recovery attempts capped ahead of 1.0980 region, as the greenback remains better bid against its main competitors, following the conclusion of the final US presidential election debate.

EUR/USD: ECB in focus

Currently, EUR/USD trades almost unchanged at 1.0974, having posted session lows at 1.0964 pre-China open. The main currency pair treads water near multi-month lows as investors remain cautious ahead of the ECB policy decision, with wide expectations that the central bank may keep the policy stance unchanged, while taper talks could be discussed at its meeting scheduled later today.

Moreover, renewed buying interest seen around the greenback in light of Clinton winning the third and final US election debate, as cited by CNN/ORC poll, also keeps any recovery in the major short-lived.

Apart from the key ECB decision, markets will also look forwards to a fresh batch of US economic releases, including the jobless claims, Philly Fed manufacturing gauge and existing home sales, due later in the NA session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1029 (Oct 18 high). A break beyond the last, doors will open for a test of 1.1050 (psychological levels) and from there to 1.1072 (Oct 12 high). On the flip side, the immediate support is placed at 1.0964 (daily low/ Oct 17 low) below which 1.0950 (multi-month lows) and 1.0900 (round figure) could be tested.