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EUR/USD Current price: 1.1824

• ECB is likely to maintain the monetary policy unchanged, discuss tapering.
• Market participants are concerned about economic growth as the Delta variant keeps spreading.
• EUR/USD recovers within range, bears retain control as long as it holds below 1.1850.

Surprisingly, the dollar became less attractive during US trading hours as government bond yields pulled back from their weekly highs. Data wise, the EU did not publish relevant figures, while the US released  IBD/TIPP Economic Optimism for September, which fell to 48.5 from   53.6 previously, and Jolts Job Openings for July, which increased to 10.93 million, better than anticipated

On Thursday, the focus will be on the European Central Bank monetary policy decision. The central bank is expected to maintain rates and the Pandemic Emergency Purchase Program (PEPP) unchanged at €1.85 trillion. Markets participants will be looking for hints on tapering and revisions to growth and inflation forecasts.

EUR/USD short-term technical outlook

The near-term picture for EUR/USD indicates that bears are in control. In the 4-hour chart, the pair is developing below a bearish 20 SMA, while the longer moving averages maintain their mildly bullish slopes below the current level. Technical indicators remain within negative levels, bouncing just modestly and far from suggesting an interim bottom. The pair would need to advance beyond 1.1850, the immediate resistance level, to shrug off the bearish stance.

Support levels: 1.1815 1.1770 1.1725

Resistance levels: 1.1850 1.1910 1.1950

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