Euro softens broadly today as markets await ECB policy decision. Traders appear to be position for a dovish, or at least cautious, ECB press conference. Nevertheless, Sterling and Dollar are also soft, indicating that the markets are not one sided yet. Meanwhile, commodity currencies are trading mildly firmer today, together with Yen. That also suggest that risk sentiment remain indecisive. That’s also reflected in sluggish trading in stock markets. Nevertheless, US consumer inflation data could bring some life back to the markets.

Technically, despite breach of 0.8929 support overnight, USD/CHF quickly recovered. There is no clear follow through selling in the greenback yet. We’d stay focused on the developments in the greenback, with focus on 1.2265 resistance in EUR/USD, 1.4248 resistance in GBP/USD and 0.7772 resistance in AUD/USD. On the other hand, break of 1881.37 support in Gold will suggest completion of recovery from 1855.30. That could be a prelude to a stronger rebound in Dollar.

source_actionforex.com