EUR/USD hovering around 1.15 handle, awaits ECB for fresh impetus

The EUR/USD pair remained under some selling pressure for the second consecutive session and extended its profit-taking slide 14-month tops touched on Tuesday. 

The pair has now moved on the brink of decisively breaking below the key 1.1500 psychological mark as traders continue to trim bullish bets and brace for today's key event risk - ECB monetary policy decision. 

Although the European central bank is widely expected to maintain status quo, investors would keenly scrutinize ECB President Mario Draghi's comments for clues over prospects of reducing its ongoing €60 billion per month bond purchase program. Draghi's comments would drive sentiment around the shared currency and act as the next big fundamental trigger driving the pair in the near-term term. 

Meanwhile, the US Dollar was also seen building on its slow recovery from 10-month lows and further collaborated to the offered tone surrounding the major. Against the backdrop of fading expectations for the US President Donald Trump's pro-growth agenda-led economic growth, the greenback rebound seems more likely to be short-lived. 

Hence, dip buying interest might continue to limit any immediate sharp downside for the major, unless Draghi delivers any dovish surprise for the markets. Today's second-tier US economic data is more likely to be overshadowed by the key central bank announcement. 

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Technical levels to watch

Below the 1.15 handle, the fall could get extend towards 1.1480-70 strong support, below which the pair would turn vulnerable to extend the corrective slide towards the 1.1400 round figure mark. On the upside, the 1.1550-55 region seems to act as an immediate hurdle, which if cleared decisively should lift the pair beyond the 1.1600 handle towards its next resistance near 1.1615-20 region.

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