An hour or so ahead of the ECB rate decision, EUR/USD has turned positive on the day. There is very little the European Central Bank (ECB) can do as discussed in the ECB preview.
Daily Chart Technicals
Daily Chart Technicals
- Euro’s failure to sustain below 1.1293 (23.6% of May 2014 high-March 2015 low) followed by a move back above 5-DMA of 1.1309 coupled with daily RSI above 50.00 indicates the currency could move towards 1.1342-1.1376 levels.
- A minor hiccup cannot be ruled out during Draghi’s press conference; however, dips could be met with fresh demand unless strong support 1.1270-1.1250 is taken out at least on hourly closing basis.
- Area between 1.1270-1.1250 is a confluence of rising trend lines seen on the daily chart above.
- A daily close below the same would signal a continuation of fall from recent high of 1.1465 levels.