- The pair looks to stabilize in the 1.1540 region today.
- The greenback stays under pressure amidst a mild recovery.
- ECB said economic risks are tilted to the downside.
The single currency keeps the flat stance today, motivating EUR/USD to gyrate around the 1.1540 region after climbing as high as the 1.1570 area during overnight trade.
EUR/USD sideline on ECB minutes
In its minutes of the December meeting, the European Central Bank noted that members suggested assessing the TLTRO impact on policy stance. Further out, the Council said risks are alternating within an uncertain environment while risks to the economic activity in the region points downwards.
In the meantime, the early upside in spot met sellers in the 1.1570 region against the backdrop of some pick up in the demand for the greenback following the FOMC-led sharp sell off yesterday.
What to look for around EUR/USD
While the pair should look to USD-dynamics and US-China trade talks progress for direction in the near term, on the longer run political effervescence in Italy, upcoming discussion over the French budget along with ongoing social unrest and the probability that German economy could enter a technical recession in Q4 are among the main headwinds facing the single currency in the next months.
EUR/USD levels to watch
At the moment, the pair is losing 0.04% at 1.1534 and a breakdown of 1.1478 (100-day SMA) would target 1.1402 (21-day SMA) en route to 1.1306 (2019 low Jan.3). On the upside, the next hurdle emerges at 1.1570 (2019 high Jan.10) seconded by 1.1621 (high Oct.16 2018) and finally 1.1733 (high Aug.28 2018).
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