Euro shows a cautious move against the greenback in early Asian session. The pair recovered from the recent lows. Euro gained some support from Germany’s GFK Consumer Confidence, which showed an improvement from 0.4 to 0.9 in October, beating market expectations of -0.4. Also, the EU reported September Money Supply, which increased by 7.4%, below the market consensus.

The US 10-year Treasury yields gained two basis points (bps) to regain 1.55% after dropping the most since mid-August the previous day. The consolidation of the US Treasury yields portrays the market’s rush for risk-safety ahead of the preliminary US Q3 GDP and monetary policy meeting of the European Central Bank (ECB). The US Q3 GDP is expected to have eased from 6.7% to 2.7% during the preliminary forecast, which would  allow the Fed to take some time before announcing the details for tapering.

As far as US data is concerned, The US Durable Goods Orders fell 0.4% in September which is better than the -0.5% expected. The preliminary estimate of the September Goods Trade Balance posted a deficit of $96.3 billion, larger than the previous and expectation $-88.1 billion.

Traders are now waiting for the European Central Bank (ECB) monetary policy decision. The ECB is widely anticipated to maintain its dovish stance but policymakers might prepare for a tighter monetary policy.

“We think ECB President Christine Lagarde will use all her diplomatic skills to moderate the diverging views of hawks and doves within the Governing Council on Thursday” said ING analysts in a note, adding they anticipate a neutral message which “may ultimately defy some of the market’s hawkish expectations”.

EUR/USD 4 Hour Chart:

Support: 1.1581 (S1), 1.1562 (S2), 1.1539 (S3).

Resistance: 1.1623 (R1), 1.1645 (R2), 1.1665 (R3).

Now traders are eargely waiting for the Eurozone Consumer Confidence, ECB Interest Rate Decision, US Gross Domestic Product (GDP), and Initial Jobless Claims to take fresh trading impetus. In the meantime we expect a mid trend for EUR/USD.