The EURUSD pair broke higher after initially dropping during the session on Wednesday, as we prepare for the ECB interest rate announcement and of course monetary policy statement.

Because of this, it’s likely that the market is going to try to break above the 1.1050 level. If we can get above there, then the Euro should continue to grind its way towards the 1.13 level.

On the other hand, we could get a bit of a pullback due to the ECB announcement, but at this point in time there is probably quite a bit of support below so that would be a short-term selling opportunity at best.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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