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  • EUR/USD has already entered the pre-ECB lull, trading in a consolidative fashion around the 1.1040/50 area.
  • Nothing is expected to happen before the ECB event on Thursday. On a dovish surprise, spot is seen returning to sub-1.10 region and testing YTD lows near 1.0920.
  • On the other hand, a potential disappointment from the ECB could see the pair testing last week’s tops in the 1.1080 region and paving the way for a probable challenge to the resistance line at 1.1122 ahead of late August peaks around 1.1160.

EUR/USD daily chart