EUR/USD eases below 1.1600, ECB in focus

FXStreet (Mumbai) - EUR/USD erased overnight gains and edged lower heading towards the European opening bells, as traders speculate over the structure of the QE program likely to be unveiled at the ECB Meeting later in the session.

The EUR/USD inched -0.22% down so far and trades close to fresh daily lows at 1.1582 levels. The pair continues to trade below 1.16 mark as traders resorted to profit-taking before the key ECB event. Moreover, traders remain cautious especially after the leaked reports stated that the ECB may propose about EUR 600bn stimulus commencing from March. The amount proposed falls much lower than market expectation of EUR 1tn.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1618 (Today’s High) levels, above which gains could be extended to 1.1650 (Jan 16 High) levels. On the flip side, support is seen at 1.1539 (Jan 20 Low) levels, below which it could extend losses to 1.15 levels.

USD/CHF near term risks remain on the downside – Commerzbank

Karen Jones, Head of Technical Analysis at Commerzbank, expects USD/CHF to see some further weakness towards 0.8452 levels, with near term risks remaining on the downside for the pair.
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Remain short EUR/USD into ECB meeting – TDS

The TD Securities Team suggest that the clear market bias is to remain short EUR/USD into the ECB meeting, and further add that there is not chance that the ECB might announce a buying of less than euro 500bn.
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