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EUR/USD consolidating near 1.1230

FXStreet (Edinburgh) - The single currency is closing its first session with losses after two consecutive gains vs. the dollar on Wednesday, taking EUR/USD to the 1.1230 area.

EUR/USD all eyes on the ECB

The recent upside to weekly tops in the 1.1330 region lacked of follow through and prompted sellers to fade the spike, triggering the ongoing correction lower. In the meantime, spot could extend its consolidative pattern into Thursday’s session, while market participants remains cautious ahead of tomorrow’s ECB meeting.

It is worth noting that market expectations see the central bank’s statement and the subsequent press conference by President Draghi tilted to the dovish side, mainly due to the recent absence of upside reaction in the region’s consumer prices.

EUR/USD key levels

At the moment the pair is losing 0.66% at 1.1239 with the immediate support at 1.1222 (low Sep.2) followed by 1.1207 (low Sep.1) and then 1.1170 (low Aug.31). On the other hand, a break above 1.1320 (high Sep.2) would open the door to 1.1333 (high Sep.1) and finally 1.1364 (high Aug.27).

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