EUR/USD clings to gains around 1.1730 ahead of ECB

• The pair stays in the upper end of the weekly range around 1.1730.
• The greenback is testing the area of weekly lows near 94.00.
• Later in the day, the ECB is expected to keep rates on hold.

The European currency is looking for direction ahead of the opening bell in Euroland, taking EUR/USD to the upper bound of the weekly range in the 1.1730 region.

EUR/USD looks to the ECB

Spot has regained the 1.1700 handle and above following the unexpected and somewhat positive outcome from the meeting between President Trump and European Commission J.C.Juncker on Wednesday.

In fact, Trump and Juncker announced yesterday that the US and the EU will start a round of negotiations, while all new tariffs will be suspended during this period of talks. The news significantly alleviated trade war concerns and sparked a correction lower in the buck, lifting at the same time the pair beyond the key 1.1700 the figure.

Looking ahead, the ECB meeting will be the salient event today. Across the pond, the weekly report on the US labour market is due seconded by Durable Goods Orders and Trade Balance figures.

EUR/USD levels to watch

At the moment, the pair is up 0.01% at 1.1729 and a breakout of 1.1749 (high Jul.23) would open the door to 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14). On the downside, the immediate support is located at 1.1575 (low Jul.19) seconded by 1.1527 (low Jun.28) and then 1.1508 (2018 low May 30).