EURUSD Forecast Before The ECB Press Conference

EURUSD Forecast Before The ECB Press Conference

Do you remember our last EURUSD Daily Technical Perspective? The price dropped just as we expected under 1.3180 and reached a low at 1.3140. Today the Euro found some buyers who managed to bring its price back to 1.3200. It will be a little more difficult to pass by this level. It is an ex support and also a round number where sellers might have waited.

EURUSD, H4 Chart

Chart: EURUSD, H4

During the next trading hours, until the ECB monetary policy will be published and the press conference will start, the EURUSD might enter in a sideways move. Usually during the ECB’s press conference the volatility of this currency pairs is spiking, but before the liquidity drops pretty good. Mario Draghi is expected to be more optimistic regarding the Euro Area economy after the latest economic releases, especially from Germany.

This event should not be taken alone, because the conflict in Syria is not yet over and the risk aversion could appear suddenly. Tomorrow there will also be released the unemployment claims (expected to be around 332K) and the ISM Non-Manufacturing (expected to fall to 55.2). On Friday the attention will be set on the Non-Farm Employment Change and the Unemployment Rate for the United States.

Continuing with the technical analysis, we are expecting for this up move to continue all the way to 1.3300. If the price will break through this level then nothing else can stop it until 1.3400. If it will be rejected from 1.3300 then the down trend might still be in place and the price could fall to 1.3100.

 

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