EUR/USD takes makes U-turn on ECB headlines

EUR/USD, which was trading at 2-week lows, turned higher and rose nearly 80 pips in a matter of minutes, amid reports suggesting the European Central Bank (ECB) is near to consensus on the need to taper QE before it ends.

EUR/USD rallied from a low of 1.1137 to a session peak of 1.1214 immediatelñy after headlines hit the wires.

Bloomberg is reporting the ECB might end its bond-buying program before the forecasted end in March 2018. According to the same report, QE tapering scenarios could include slowing purchases by EUR 10 billion per month.

However, EUR/USD failed to hold above 1.12 and it is currently trading at 1.1194, still 0.14% below its opening price.

EUR/USD technical levels

In terms of technical levels, immediate supports are seen at 1.1122 (Aug 31 & Sep 21 low) and 1.1100 (psychological level). On the flip side, resistances line up at 1.1218 (21-day SMA), 1.1250/58 (Sep 30 high/Sep 27 high), 1.1283 (Sep 15 high) and 1.1326 (Sep 8 high).