CurrenciesCurrencies ForecastEURUSD ForecastForecast And Technical Analysis PremiumForecastsPremium

EURUSD Forecast: ECB Ahead “Upside is capped”

EURUSD Forecast: ECB Ahead “Upside is capped”

ECB Interest Rates decision and Eurozone GDP will be released today. There is a  high risk of volatility during the press conference.

I do not expect any big change to boost Euro. The general message should remain cautious with the ECB attempting to avoid unintentional tightening of monetary conditions. Here a potential hint at further TLTROs should reinforce such a message.

Why is the upside is limited for EURUSD? The following two reasons are more than enough.

  1. The rate differential between the USD and EUR intact.
  2.  The lack of catalysts for a more meaningful reversal in the dovish ECB stance ( Slowing down Eurozone Economy, Political Turmoil, Brexit Uncertainty

Unless any positive data surprise translates into a shift in the ECB stance (from the current cautious tone to a more hawkish stance ) I do not think EURUSD to break above 1.15600.

I  see it unlikely that the ECB will deliver a meaningful tightening  near term (as core CPI will remain below the target)

Until we see clear data evidence which can be a catalyst to Hawkish ECB, we plan to sell all possible throwbacks.

Looking at the matter technically, the pair is trading below 1.13600 resistance and under bearish pressure. Our near term targets are 1.12700 and 1.12200.

A firm H4 closing above 1.13600 may carry the price towards 1.14300 where we see a strong technical resistance.

Conclusion: We keep our short positions with targets 1.12700 and 1.12200

DON’T MISS OUT!! LIMITED TIME OFFER

BASIC PACKAGE MEMBERSHIP 6 MONTHS for $ 219

VERIFIED ACCOUNT AND SETUP RESULTS

CURRENCIES FORECAST   COMMODITIES FORECASTS   PATTERN SETUP    NEWS  SUBSCRIBE

Subscribe to our premium packages if you would like to get 1000+ instruments analysis and trade signals of Chartreadreadepro.

You can contact us via Skype User Name: Chartreaderpro

DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money

EURUSD : Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility

Tags
Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close