EUR/USD on the offers around 1.1265, ‘Super Thursday’ in focus

The shared currency extends its weakness against the greenback in the European morning, keeping the EUR/USD pair within a striking distance of daily lows struck at 1.1260 last hour.

EUR/USD to remain cautious ahead of ‘Super Thursday’

Having failed once again near 1.1285 levels, the spot continues to remain on the back foot, as markets refrain from creating any fresh positions ahead of the key  political and economic risk events due tomorrow, marking a Super Thursday. The UK general election, fired FBI director Comey’s testimony and ECB monetary policy decision are the main market moving events for the week that will be due tomorrow.

Ahead of the UK election, the main currency pair will continue to take cues from the EUR/GBP price-action, while the Euro remains undermined, as markets believe that the ECB will turn out dovish on its policy stance. Also, Comey’s testimony is likely to have a big impact on the US dollar, and hence, traders prefer to remain on the sidelines.

More so, banking sector troubles propping up in Spain amid investor concerns over capital levels in the country's banking sector, also keeps the EUR bulls at bay. Meanwhile, markets await the sentiment on the European open for fresh trading impetus, in absence of economic releases from both continents.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank noted: “EUR/USD expected to struggle at 1.1300: The Euro remains capable of retesting the 1.1300 November 2016 high, however we suspect that this may hold the initial test as we note the large divergence of the daily RSI, which reflects a loss of upside momentum. It will remain bid while above the near term uptrend at 1.1088. Initial support is the accelerated uptrend at 1.1237.”