FXstreet.com (Barcelona) - The EUR/USD fell modestly ahead of the ECB's interest-rate decision. The pair was pressured by higher eurozone unemployment, falling German retail sales and contracting eurozone manufacturing.
The ECB is expected to cut interest rates 50 basis points, its refinance rate by 25 and lengthen the maturity of ECB refinancing operations to up to twelve months. The ECB may also announce plans to buy private sector bonds.
More aggressive easing may pressure the pair in the short run but could bring a eurozone economic recovery forward, which should support the EUR/USD, said Hans Nilsson, analyst at CMS Forex.
There are important support in the 1.30-area and important resistance in the 1.37. If these technical levels are not broken, the EUR/USD will be range-bound.