EUR/USD blocked above 1.2500 ahead of ECB

FXstreet.com (Barcelona) - 26 pips range 1.2512/38 is what EURUSD has moved in current Asia-Pacific session, last at 1.2530, frozen ahead of key risk events later in the European session, with local share markets and US futures slightly lower, Hang-Seng -0.35% and Nikkei -0.29%. Very shallow markets over all, including Aussie which fell after better than expected trade deficit. All eyes around the world focused in today's ECB meeting, widely expected to cut rates.

The London session ahead comes full with key risk events starting with Spain selling up to ¬ 3B in bonds, while yesterday the 10 year yield of the Spanish bonds rose from initial 6.2% to end the day at 6.4%. Apart from this, Ireland will auction ¬ 500 million in 6 month bills at 08:30 GMT and France will sell up to ¬ 8 B 20 minutes later in long term sovereign debt.

Also German factory orders will be out at 10:00 GMT followed by key risk event of the day for EUR at 11:45 GMT with ECB minimum bid rate and later press conference at 12:30 GMT. BoE official bank rate and asset purchase facility at 11:00 GMT will also bring volatility to EURGBP cross. Following US session will also be quite busy in macro data releases including jobs figures.

Immediate support to the downside for EURUSD comes at recent session/yesterday's and June 22 lows around 1.2515, followed by June 25 lows at 1.2470, and June 05/28 lows at 1.2410. For the upside, closest resistance comes at recent session highs/June 14 lows at 1.2540, followed by June 19/July 03 lows at 1.2560, and May 28/June 07/July 04 highs at 1.2625.