The euro held steady on Tuesday. This comes as investors speculate whether the central bank will announce its QE program at the monetary policy meeting this Thursday. Speculation is rife that the central bank could seek more time before committing to a relaunch of QE.
EUR/USD Forms a Minor Double Top
The EURUSD establishes resistance near 1.1059, forming a minor double top pattern on the four-hour time frame. A breakout above this level will see the euro rising to 1.1085 as the minimum target. Further gains could push the common currency closer to the main resistance area of 1.1140. To the downside, the support at 1.1016 will remain key. A close below this support could trigger further declines.