EUR/USD today
Trades on the EUR/USD pair on Wednesday were closed by a significant strengthening of the euro, despite the positive statistics for the US, the pressure in the EUR/GBP cross and the growth of the US Treasurys. As a result, yesterday’s forecast did not justify itself. The reason for this market movement was caused by the expectation of the results of the ECB meeting, which led investors to adjust their positions. Fundamental factors have made their adjustments to the technical picture of the market.
Events for today:
- 14:45 – Publication of the results of the ECB meeting: the deposit rate in the euro area and the decision on the interest rate of the ECB.
- 15:30 – Data on the US: the balance of foreign trade in US goods and the number of initial applications for unemployment benefits in the US.
- Also at 15:30 – A press conference of the ECB.
- 17:00 – Publication of the index of unfinished sales in the US real estate market (m/m).
The main event of the day is the publication of the ECB protocol and the ECB press conference. Market expectations regarding the ECB protocol can be found here.
Despite the fact that the pair EUR/USD appreciably strengthened in recent days, there is still a downtrend in the pair, even though it has noticeably slowed. The upcoming ECB protocol is the main reaseon for such a behaviour.
Therefore, the dynamics of this pair and the euro as a whole will depend on the results of the ECB meeting. Intraday support levels: 1.1800, 1.1770-40 and 1.1680, resistance: 1.1830-50, 1.1880 and 1.1930-50. A significant spread in levels is caused by the expected high level of volatility.
Hanzenko Anton