EURUSD (1.1671): The EURUSD maintained its strong gains as EURUSD touched highs of 1.1682. This marked a two-year high in the currency as investors prepare for the European Central Bank to announce the second tapering to the ECB’s QE program sometime in autumn. Still, there is scope for disappointment as any tapering is likely to take place only in January or in the early months of next year.
Technically, EURUSD’s rally looks a bit overstretched which makes it a bit difficult to take long positions at the current levels. In the short term, support is seen at 1.1475 which could be tested. However, any downside bias is likely to be established only on a convincing close below 1.1635. With the ECB expected to tighten QE, investors will no doubt be focusing on the economic data from the eurozone.
