We see Thursday's ECB event risk being a temporary positive one for EUR/USD. For that reason, we suspect that EUR/USD can find some support in the short term near the 1.0700 area – even if Oil prices do push higher.

Elsewhere, we have recently favoured a move lower in EUR/JPY based on positioning. Thursday's ECB could see EUR/JPY briefly trade back up to the 158.50 area, but some excitement over a possible change in Bank of Japan interest rate policy later this year suggests the 150 and 160 levels on USD/JPY and EUR/JPY prove toppish.