EUR/USD hits fresh daily highs at 1.1592

FXStreet (Mumbai) - EUR/USD edged higher in the European morning, pulling away from fresh twelve year lows as market begins to price-in European Central Bank’s (ECB) action in their upcoming meeting later this week.

Currently, the EUR/USD posts fresh day’s high at 1.1592 levels, up 0.22% on the day. The EUR/USD edged higher in anticipation of the ECB rolling out aggressive government bond purchases when it meets this Thursday, amid increasing risks of deflation along with struggling economic growth in the euro zone. The central bank is expected to announce some form of full-blown QE, with predicted amounts ranging from EUR 500 billion to EUR 1 trillion.

Moreover, the pair may remain elevated in absence of any significant data for balance of the day as the US remains closed on a national holiday.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1622 (5-DMA) levels, above which gains could be extended to 1.1650 (Jan 16 High) levels. On the flip side, support is seen at 1.15 levels, below which it could extend losses to 1.1459 (Jan 16 Low) levels.

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The overall bearish bets on the US 10-year Treasuries declined for the second week to the lowest level in over a month, showed the data released by the Commodity Futures Trading Commission (CFTC) on Friday.
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