EUR/USD tests highs near 1.1780

• Rebound in EUR/GBP sends spot higher
• Up move in US yields keeps limiting the upside
• Rangebound set to continue ahead of ECB event

The single currency is now picking up extra pace vs. the greenback, lifting EUR/USD to the 1.1770/80 band, or daily peaks.

EUR/USD to remain sidelined ahead of ECB

After two consecutive sessions in the red territory, the pair seems to have found some decent support in the 1.1730/20 band, although the upside appears so far capped around 1.1770.

In fact, yields of the US 10-year reference managed to clinch fresh tops above the critical 2.40% handle earlier in the session, lending support to the buck and thus keeping spot within the daily range.

Earlier in the session, positive prints from October’s advanced PMIs in the euro bloc added to the positive momentum around the shared currency, although it stayed unable to gather fresh traction.

Ahead in the week, the pair remains poised to stay rangebound in light of Thursday’s ECB meeting. Market consensus expects a somewhat dovish message while QUE ‘tapering’ should stay in top of the investors’ agenda.

EUR/USD levels to watch

At the moment, the pair is up 0.21% at 1.1774 and a break above 1.1801 (10-day sma) would target 1.1858 (high Oct.20) en route to 1.1882 (high Oct.12). On the flip side, the next support is located at 1.1725 (low Oct.23) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). In addition FXStreet’s technical confluence indicator (TCI) notes important resistance area around 1.1780/85, ahead of the more relevant 1.1810 zone, consistent of a pivot point, a Fibo retracement and the 10-day sma.