EUR/USD clings to gains above 1.0900

After climbing as high as the 1.0950 area on Wednesday, EUR/USD has sparked a correction lower to the current 1.0900 neighbourhood.

EUR/USD focus on USD, ECB rumours

Spot faded yesterday’s spike to fresh highs in the mid-1.0900s following rumours that the ECB could extend its bond purchase programme beyond March 17, as cited by news agency Reuters. Probably Reuters just said out loud what it is already vox populi among market participants.

The pair has thus scaled back its gains and returned to the comfort zone around the 1.0900 handle amidst some pick up in the demand for the US dollar.

Later in the day, EMU’s Private Loans figures and M3 Money Supply are due followed by US Initial Claims, Pending Home Sales and Durable Goods Orders

EUR/USD levels to watch

The pair is now up 0.05% at 1.0913 facing the next resistance at 1.0947 (high Oct.26) followed by 1.1015 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).