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EUR/USD higher ahead of ECB meeting - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik notes that EUR/USD is trading withinn teh recent range on Thursday, close to the 1.2530 daily high.

Key quotes

"Technically, the pair consolidates near its two year low set at the base of mentioned Fibonacci retracement, with a mild positive tone coming from technical readings as per 20 SMA flat around 1.2510 converging with next Fibonacci level, the 50% retracement, and momentum aiming slightly higher above 100."

"Nevertheless, market today is all about ECB: up to last week, market was speculating the Central Bank will continue to emphasize its ABS program, and even tip something about upcoming QE for Europe."

"But earlier this week, rumors central bankers are ready to challenge Draghi’s authority, has increased the uncertainty over what may happen today: will he hold back, or even disregard further easing, pressured by its colleagues?"

"Whatever happens, price action will likely be quite choppy, and the EUR/USD may even raise on a more neutral stance from the ECB, albeit the movement will be seen as an opportunity to join the selling party."

"Above 1.2530, the rally may extend up to 1.2580 price zone, while if stops above are triggered, price will find next resistances at 1.2620 and 1.2660: up to this last, the bearish trend will remain in place."

"If market however reacts selling the pair, the support area to follow is 1.2440/60 as once below the slide may extend down to 1.2370 price zone."

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