EUR/USD keeps just above parity with the ECB in focus 0 (0)

<p style=““ class=“text-align-justify“>The large option expiries at the parity level are arguably the key attraction for price action during the session and that seems to be holding the more or less narrow range for EUR/USD ahead of the ECB later today.</p><p style=““ class=“text-align-justify“>The ECB is in a rather unenviable spot as they are set to announce an aggressive 75 bps rate hike to try and put the inflation naysayers to bed. However, it comes at a cost of hurting an already spiralling economy – which looks set to enter a recession in the winter amid the impending energy crisis.</p><p style=““ class=“text-align-justify“>So, what are the key levels to watch ahead of the ECB decision?</p><p style=““ class=“text-align-justify“>In the event we do see any positive kneejerk reaction for the euro, the recent swing highs around 1.0075-90 will be ones to watch and I would expect sellers to lean on those levels to keep a lid on price action on the day.</p><p style=““ class=“text-align-justify“>As for downside risks, the 0.9900 handle remains the key one to watch on the daily chart.</p><p style=““ class=“text-align-justify“>I outlined some thoughts on the meeting <a target=“_blank“ href=“https://www.forexlive.com/news/welcome-to-ecb-day-20220908/“ target=“_blank“>here</a>. On the balance of things, I would expect the euro to remain pinned lower against the dollar and if we do see any form of bounce for whatever reason, that will make a good sell on the rally scenario.</p>

This article was written by Justin Low at forexlive.com.

Go to Forexlive