EUR/USD in tight range ahead of ECB

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EUR/USD in tight range ahead of ECB

FITITOL--> FXstreet.com (San Francisco) - EUR/USD traded down 0.7% on Wednesday to 1.2524, fueled by reduced ECB expectations and thin liquidity during the NA session as markets in the U.S. were shut for the Independence Day holiday.

The EBC is expected to cut its deposit rate by 25 bps, but Draghi’s post-decision statement will be watched closely as the ECB is expected to play its own part in the crisis resolution.

As Valeria Bednarik, Chief Analyst at FXstreet.com notes from a technical perspective, the 4 hours chart holds a bearish tone, but is limited in strength so far; “still a break below 1.2470 key support should lead to a stronger slide in the pair towards the 1.2400/20 price zone,” she says.

In the current Asian session, investors are expected to remained sidelined before the ECB policy setting meeting later this Thursday. EUR/USD last tr ades at 1.2523, with support levels noted at 1.2510, 1.2470 and 1.2420, while resistance levels lie at 1.2545, 1.2580 and 1.2620.