EURUSD: ECB in the focus: Likely non-event or more dovish tone.
Next 24h, the main focus is ECB Meeting which a press conference which might have a strong impact on EURUSD and the rest of market.
We see that market is lacking of data to trade, hungry of data could make ECB Meeting tomorrow becomes more important.
In my opinion,100% ECB will not cut rate anymore because rate is now below 0%, they could, but I haven't ever seen any central bank did in the history.
However, more dovish tone is likely, EZ economic data recently is very negative, ECB should do something, but they don't any tool to act now:
- They did cut rate
- They used QE
I think probadly they could extend QE, but this time is unreasonable.
A safe solution is wait, so the meeting becomes a non-event.
- Technical Analysis
- EURUSD has a resistance at 1.14000
Stop at Kumo cloud.
A big triangle pattern I draw on the chart, any break will come with a strong trend.
A support at 1.1200
HERE IS MY STRATEGY: I ONLY BUY WHEN EURUSD BREAKS THE RESISTANCE 1.14000
AND I SELL WHEN EURUSD BREAKS 1.1200
WAIT AFTER MEETING IS THE SOLUTION I CHOOSE
We see that market is lacking of data to trade, hungry of data could make ECB Meeting tomorrow becomes more important.
In my opinion,100% ECB will not cut rate anymore because rate is now below 0%, they could, but I haven't ever seen any central bank did in the history.
However, more dovish tone is likely, EZ economic data recently is very negative, ECB should do something, but they don't any tool to act now:
- They did cut rate
- They used QE
I think probadly they could extend QE, but this time is unreasonable.
A safe solution is wait, so the meeting becomes a non-event.
- Technical Analysis
- EURUSD has a resistance at 1.14000
Stop at Kumo cloud.
A big triangle pattern I draw on the chart, any break will come with a strong trend.
A support at 1.1200
HERE IS MY STRATEGY: I ONLY BUY WHEN EURUSD BREAKS THE RESISTANCE 1.14000
AND I SELL WHEN EURUSD BREAKS 1.1200
WAIT AFTER MEETING IS THE SOLUTION I CHOOSE