EUR/USD keeps lows near 1.0960 ahead of ECB

The shared currency is extending its bearish note on Thursday, now relegating EUR/USD to navigate the lower bound of the range near 1.0960.

EUR/USD attention to the ECB

The pair is retreating since Tuesday, coming down from the tepid bullish attempt to the 1.1030 as the greenback has slowly resumed its recent upside. Market participants have quickly digested the lackluster results from US retail sales and inflation figures, paving the way for a resumption of the rally.

Later in the session, the ECB will hold its monetary policy decision. Consensus among investors sees the central bank refraining from any surprise today, although the tone of the statement and subsequent press conference by President Draghi is expected to lean towards the dovish side.

Other event worth of attention will be the 2-day EU Leaders Summit, which kicks in today in Brussels and includes debates on migration, trade and Russia although a discussion around ‘Brexit’ has not been entirely ruled out.

Across the pond, the usual weekly report on the US labour market is due followed by Existing Home Sales, the Philly Fed manufacturing survey and the speech by NY Fed W.Dudley (permanent voter, neutral).

EUR/USD levels to watch

The pair is now losing 0.15% at 1.0957 and a breakdown of 1.0950 (low Jul.27) would target 1.0909 (low Jun.24) en route to 1.0820 (low Mar.10). On the flip side, the initial hurdle aligns at 1.1002 (7-month resistance line) followed by 1.1029 (high Oct.18) and then 1.1055 (4-month resistance line).