EUR/USD hits fresh highs above 1.1140 as US Dollar retreats

• DXY turns negative late during the American session as recovery fades.  
• Euro up versus US Dollar and Swiss Franc, steady against Pound, ahead of ECB meeting.  

The EUR/USD pair gained momentum late during the American session amid a decline of the US Dollar across the board. The pair broke above 1.1125 and climbed to 1.1139, reaching a fresh daily high.  

Near the end of the session holds near the top, posting modest gains for the day. The US Dollar weakened despite the rebound in US yields. The DXY is down 0.10% at 97.43 after hitting earlier today a 5-day high at 97.65.  

On Thursday, key economic data from the Eurozone and the US is due with the PMIs. The key event will be the European Central Bank (ECB) meeting. It will be the last time from Mario Draghi and no change in monetary policy is expected. Analysts at TD Securities expect EUR/USD to remain tame. “Most directional risks favor moderate downside as we expect Draghi to ride off on a dovish note. Market attention will soon turn to any early hints on policy preferences from incoming President Lagarde.”

From a technical perspective, the short-term bias points to the upside but price is testing the upper limit of a descendant channel. A consolidation on top of 1.1140 would point to further gains while below, EUR/USD is likely to consolidate between 1.1115 and 1.1140 ahead of the Asian session.