EUR/USD saw a few swings within the trading range as discussed. ("The pair saw another move lower yesterday but we did not get any follow through to the downside. It seems that traders are not overly eager to put up new positions ahead of the ECB decision tomorrow. Bargain hunters stepped in and pushed the pair higher towards 1.3650 but of course: no follow through. We expect this “game” to continue and expect a trading range in between 1.3650 and 1.3590 for Wednesday. The ADP employment report due this afternoon could provide for a bit of a catalyst for a somewhat larger move as it is often a good indicator for Friday`s non-farm payroll data. If you want to trade the EUR/USD today we recommend buying near support (green) and selling near resistance (red). Trend followers should stay sidelined until we see a break out of the above mentioned range.")
EUR/USD saw a few bounces and steep drops on Wednesday. All remained within the recent trading range between 1.3650 and 1.3590. Every bounce was sold and every drop was bought. Macro data could not create any lasting trend. The game will finally come to an end today: It is Draghi time! We do not want to speculate on any action by the ECB, the chart picture does not really help as well. The trend is down and many speculate on a further drop in the single currency but if the ECB does not deliver new measures we could see a huge short covering rally. It is probably best to stay sidelined and wait until the dust has settled. Retail sales from the euro zone at 11 pm CET will not have much of an impact today as the eyes are on the ECB.
EURUSD 1h Technical Analysis
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