The Euro has been on a steady decline against the USD since mid-February of 2018. The pair has reached a new low of 2019 on September 3rd at 1.09259 and then rallied on Dollar weakness following worse than expected ISM Manufacturing.
On a 4HTF, we have a strong bearish candle that engulfed all of yesterday. This is following a TK cross to the downside. The Chikou span also crossed the price chart down. And the price retraced nicely from our local trend line down.
The pair is waiting for the anticipated ECB Interest Rate decision tomorrow at 11:45 GMT. Investors have already priced in a rate cut of at least 10 basis points. The ECB is also likely to restart Quantitative Easing program in October and is to announce this tomorrow as well.
As the possible rate cut is already priced in, we aren’t likely to see significant movement to the downside.
Our targets down will be around 1.09670 September support, following that 2019 low at 1.09262. Further movement down will likely close the GAP (at 1.08208) that was created on April 24th of 2017 during the French election when Macron won over Le Pen.
In case the ECB disappoints investor expectations with a rate cut the EUR Bulls will show great momentum.
A movement up, will have target areas at the 50% Fibo, which corresponds with our local trend line as well as the top of the Ichimoku cloud at 1.10449. Following that 1.10729 at 61.8% Fibo and then 1.11129 78.6% Fibo showing a good area of resistance.
On a 4HTF, we have a strong bearish candle that engulfed all of yesterday. This is following a TK cross to the downside. The Chikou span also crossed the price chart down. And the price retraced nicely from our local trend line down.
The pair is waiting for the anticipated ECB Interest Rate decision tomorrow at 11:45 GMT. Investors have already priced in a rate cut of at least 10 basis points. The ECB is also likely to restart Quantitative Easing program in October and is to announce this tomorrow as well.
As the possible rate cut is already priced in, we aren’t likely to see significant movement to the downside.
Our targets down will be around 1.09670 September support, following that 2019 low at 1.09262. Further movement down will likely close the GAP (at 1.08208) that was created on April 24th of 2017 during the French election when Macron won over Le Pen.
In case the ECB disappoints investor expectations with a rate cut the EUR Bulls will show great momentum.
A movement up, will have target areas at the 50% Fibo, which corresponds with our local trend line as well as the top of the Ichimoku cloud at 1.10449. Following that 1.10729 at 61.8% Fibo and then 1.11129 78.6% Fibo showing a good area of resistance.