EUR/USD eases from daily peaks, back near 1.2000

The upside momentum in EUR/USD now seems to be taking a breather, returning from earlier tops in the boundaries of 1.2060 to the current 1.2000 neighbourhood.

EUR/USD remains bid post-ECB

Spot lost some momentum around 1.2060, just pips away from YTD tops around 1.2070 seen during last month, following a small rebound in the greenback.

The positive tone around EUR stays unabated, however, following the ECB decision to leave unchanged its monetary status quo unchanged and the press conference by President M.Draghi.

Draghi disappointed market expectations of a dovish tone at today’s meeting, mostly based on the recent appreciation of the exchange rate. However, Draghi did not address the issue, focusing instead on inflation and the incipient recovery in the region.

Furthermore, Draghi also left the door open for some QE-related announcement at the October meeting.

EUR/USD levels to watch

At the moment, the pair is gaining 0.84% at 1.2017 and a break above 1.2059 (high Sep.7) would aim for 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop). On the downside, the immediate support lines up around 1.1924 (10-day sma) seconded by 1.1847 (10-day sma) and then 1.1823 (low Aug.31).