The dollar remains under pressure today, helping lift EUR/USD to new recovery highs in the pair’s recent advance. EUR/USD is currently trading at 1.1282, up 0.39%.
The rally has brought the pair up to test the 61.8% Fibonacci retracement of the decline into the late August low. A break above this retracement level would increase the potential for follow through to test the August rally high at 1.1366.
Volatility, however, could come into play later today, with the ECB’s decision on interest rates. Rates are expected to be left unchanged, with the main focus on whether bond purchases will be extended beyond March of next year.