Euro consolidates ahead of the today’s ECB meeting (12:45 GMT) and, especially, the ECB press conference (13:30 GMT). No monetary policy changes are expected today, but the euro could be pulled down by “dovish” Mario Draghi’s comments.
However, some analysts believe that the market has already priced in a chance of Draghi’s hints on a rate cut. So, if he won’t do this, EUR/USD could be bought back.
EUR/USD: Daily" title="EUR/USD" width="570" height="482">
From the technical view, the pair bounced from a strong support at $1.3030 (50-day MA, Nov.-Jan. trend line support). On Wednesday the pair formed a hammer-like candle. Therefore, technical prospects for today are bullish. The overall bias will remain bullish until EUR/USD trades above $1.2875 (Dec. low).
On the upside the pair could face strong resistance in the $1.3150/3310 area, so we recommend going short if the pair approaches these levels.
- Support: $1.3030, $1.3000, $1.2875
- Resistance: $1.3100, $1.3150, $1.3310 (100-month MA)