The single currency marked decrease against the US dollar on Wednesday session and the EUR/USD pair closed lower at 1.0680. The upcoming ECB’s monetary policy meeting today is going to set the pair under pressure. Technically the pair remains bullish, but a surprisingly dovish tone by Draghi can push the pair to downside.
Euro/dollar collapsed yesterday after the Fed chairman said the US economy is performing well and FED may gradually rise interest rates. The bias is bearish for now to test 1.0600. However, that price is still moving in the upward price channel, suggesting that the bullish phase after the bounce from 1.0350 is valid. First resistance is 1.0690, whose breach could resume bullish momentum testing 1.0800. Intraday support remains 1.0550. A clear break below could lead price to neutral zone testing 1.0500.
On yesterday session, the EURUSD fell with a narrow range and closed near the low of the day, although managed to close within previous day range, which suggests being slightly on the bearish side of neutral.
The currency pair is trading above the 10 and 50-day moving averages should act as a dynamic supports but remains trading below the 200-day moving average that also should act as dynamic resistance.
The key levels to watch are: a daily resistance at 1.0819, a daily support at 1.0622, the 10-day moving average at 1.0607 (support), the 50-day moving average at 1.0558 (support) and a daily support at 1.0462.
EUR/USD is trading absolutely unchanged since yesterday's level around the 1.0660 level. The pair appears to be anticipating the Inauguration of Donald Trump as President of the United States of America. High volatility can be expected and traders are advised to use low leverage and small positions as market can go either way.
EUR/USD is in its third day of consolidation at 1.0660 as market participants are cautious of the upcoming Inauguration of Donald Trump. High volatility remains the main factor that can take over the markets today.
With the start of the 45th President of USA era the EUR/USD pair is seen uplifted and reached a six week high, climbing above the 1.07 handle. Looking at a weekly chart the technical indicators are recovering from oversold territory but yet are placed below the mid-lines. Expecting an upward correction around 1.08 level.
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