EUR/USD trims losses to the 1.1760/70 band

A bout of selling pressure is now hitting the greenback and is allowing EUR/USD to test the 1.1760/70 area.

EUR/USD expected to stay sidelined

Spot is extending its sideline theme at the beginning of the week, trading around the 1.1770 region although still within familiar ranges.

In the meantime, USD-dynamics remain well behind the pair’s price action in the near term, while further consolidation is expected ahead in the week in light of the upcoming Jackson Hole Symposium in the second half of the week.

This year’s symposium has gathered unusual interest, as hopes of some kind of announcement from ECB’s M.Draghi regarding the central bank’s QE have been on the rise since the ECB Forum in Sintra. It is also worth mentioning that news last week seems to have ruled out any fresh announcement in this regard.

Nothing expected on the data front in Euroland, whereas the Chicago Fed National Activity index is only due across the pond.

EUR/USD levels to watch

At the moment, the pair is advancing 0.02% at 1.1763 and a breakout of 1.1790 (high Aug.17) would target 1.1846 (high Aug.11) en route to 1.1894 (high Aug.3). On the flip side, the immediate support aligns at 1.1662 (low Aug.17) seconded by 1.1611 (low Jul.26) and finally 1.1602 (5-month up trend).