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FxWirePro: EURUSD trades in a narrow range, markets eye ECB policy

Major resistance  1.1080-830

 

EURUSD is consolidating in a narrow range between 1.10846 and 1.10150 ahead of the ECB meeting. for the past two trading sessions. The Central bank is expected to cut the deposit rate by 20 bps and the chance to restart QE was 82% this week compared to 58% in Jul, according to a Bloomberg survey. The pair hits an intraday low of 1.10157 and is currently trading around 1.10374.

 

US 10 year bond yield is trading higher and jumped more than 17% from low of 1.428%. The spread between US bond 10-year and German bund yield has widened from 209 bps to 221 bps.

 

On the flip side, near term support is around 1.1000 and any violation will drag the pair to the next level till 1.0960/1.0925. Any major bearish continuation only below 1.09200.

 

The major level to be watched is 1.1080-830 (support turned into resistance and 21- day MA) and any move above this will take the EURUSD to next level till 1.1100/1.11750-80.

 

It is good to buy on dips around 1.1028-30 with SL around 1.1000 for the TP of 1.1080

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