FXStreet (Edinburgh) - The EUR is now easing some ground on Tuesday, dragging the EUR/USD to the mid-1.37 area from peaks beyond 1.3770.
EUR/USD extends the rebound
Despite retracing part of the initial gains, spot’s upside remains intact ahead of the key ECB meeting on Thursday and US Payrolls on Friday. However, prior to those big events, the EMU will release the advance figures for the Q4 GDP, where consensus expects the economy to have expanded 0.3% inter-quarter. Analysts at BTMU assessed that “the improving growth outlook also argues at the margin against the ECB easing policy further in the near-term. However, economic growth is still likely not fast enough to quickly reduce excess capacity which remains elevated weighing down upon inflation”.
EUR/USD levels to watch
The pair is now advancing 0.16% at 1.3753 with the next resistance at 1.3793 (high Mar.3) followed by 1.3825 (2014 high Feb.28) and then 1.3894 (2013 high Dec.27). On the flip side, a breakdown of 1.3721 (low Mar.3) would target 1.3694 (low Feb.28) en route to 1.3672 (21-d MA).