EUR/USD today: the pair is waiting for the ECB meeting and Draghi’s speech

After yesterday’s trading, the pair EUR/USD managed to get out of the settled downtrend and update the week’s maximum based on the Fed’s concerns about inflation in the US. Now all the market’s attention is focused on the ECB and the Draghi press conference, on which the dynamics of the euro and the EUR/USD pair will depend. Yesterday’s expectations.

Events for today:

• 14:00 – publication of the results of the Bank of England meeting: the total volume of the Bank of England’s QE program, the decision on the interest rate of the Bank of England and the minutes of the meeting of the Committee for Monetary Policy of the Bank of England.
• 14:45 – the results of the ECB meeting: the deposit funds rate in the euro area and the decision on the interest rate of the ECB.
• 15:30 – publication of the US news block: the US base retail sales index (m/m), the US export price index (m/m), the US import price index (m/m), the number of initial applications for unemployment benefits in the US and retail sales in the US (m/m), the forecast is 0.3%, the previous value is 0.2%.
• Also, at 15:30 – a press conference of the ECB.
• 16:45 – publication of data on the US: the index of business activity in the manufacturing sector (PMI) in the US and the index of business activity (PMI) in the US services sector.
• 17:00 – announcement of the volume of inventories in the US (m/m).

In addition, the market is focused on the ECB and Draghi’s speech, which will determine the dynamics of the single currency.

After yesterday’s growth, the pair EUR/USD is trading under pressure of correction, expecting data on the monetary policy of the eurozone. The main support is the level 1.1800. The breakthrough of this level will open the way to support levels 1.1760-50 and 1.1720-00. What will also indicate the return of this pair in a downtrend. If the ECB protocol and Draghi’s comments prove to be positive, one should expect the update  of the highs at the levels 1.1850-70 and 1.1880-90, which will indicate the formation of an uptrend.

Fig. EUR/USD. Current price – 1.1820

Hanzenko Anton