EUR/USD: Bulls conquer 1.0800 ahead of ECB

The euro found renewed bids near 1.0760 region post-European open, triggered a fresh rally in EUR/USD to reach 1.08 handle.

EUR/USD takes-out 1.08, what next?                                                              

Currently, EUR/USD jumps +0.45% to fresh 3-week highs of 1.0802, now making headways towards 50-DMA barrier located at 1.0830 levels. The bullish momentum behind the EUR/USD pair gained further traction in the European session, tracking a solid rally in the German yields, as most industry analysts believe that Draghi could offer some hints on tapering, in fact the monthly purchases could be tapered to €60 billion from EUR 80 billion currently. ECB to embark on a taper course, reducing monthly purchases to €60 billion - Citi

Moreover, markets clear out USD longs heading into the event, with the greenback now retracing more-than quarter of the Trump-win led rally. Meanwhile, cautious trading activity seen on the European indices also collaborates to the upbeat momentum behind the funding currency euro. European stocks retreat from 11-month tops ahead of ECB.

All eyes now remain on the ECB QE verdict and Draghi’s presser for next direction on the major, while the US jobless claims due out in the NA session is expected to virtually have no impact on the prices.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0817 (Nov 15 high). A break beyond the last, doors will open for a test of 1.0830 (50-DMA) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0721 (5-DMA) below which 1.0700 (round number) and 1.0680 (10-DMA) could be tested.