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EUR/USD: waiting for the ECB

EUR/USD is trading slightly below the $1.3000 mark ahead of the forthcoming ECB policy announcement (11:45 GMT) and the Draghi’s press-conference (12:30 GMT). Yesterday euro dipped to $1.2922, but managed to close a bit above $1.3000.  

We remain bearish on the pair and expect it to test our initial $1.2850 target in the coming days. Mario Draghi is widely expected to sound more dovish this time, while yesterday’s US NFP from ADP came out better than expected, increasing the expectations of QE tapering.

Near-term support for the pair is seen in the $1.2930/00 area, while resistance – around $1.3025. Rise above $1.3070/80 could open the way for a higher correction to $1.3200, but from a fundamental viewpoint it looks unlikely these days. 

Chart. Daily EUR/USD

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