Yesterday the pair showed a volatile trade amid the ECB meeting. As soon as the decision to cut the refinance rate to zero and the deposit rate to -0.4% was made, the pair significantly fell. However, later comments by Mario Draghi that in the near future more easing in unlikely sent the pair in the opposite direction. At the same time, pair’s growth was limited by strong data on Initial Jobless Claims form the US that fell to 259 thousands that was better than forecasts.
Today attention needs to be paid to data on Imports and Exports from the US.
Support and resistance
On the 4-hour chart, the price broke out the upper MA of suggesting a downward correction possibility towards the level of 1.1038. histogram is in the positive zone but its volumes are falling indicating a correction possibility as well.
Support levels: 1.1158, 1.1038, 1.1000, 1.0990.
Resistance levels: 1.1217, 1.1250, 1.1286.
Short positions can be opened after the breakdown and consolidation below the level of 1.1100 with targets at 1.1038, 1.0990 and stop-loss at 1.1125.
Long positions can be opened after the breakout and consolidation above the level of 1.1217 with targets at 1.1250, 1.1286 and stop-loss at 1.1242.