FXStreet (Barcelona) – Valeria Bednarik, Chief Analyst at FXStreet, shares the outlook for EUR/USD into the ECB meeting and the US data releases ahead.
Key Quotes
“According to the 4 hours chart, the pair may move south today, as the technical indicators are looking exhausted in overbought levels, signaling a bearish corrective movement ahead. However, the ECB decision will define the upcoming moves today.”
“The focus will be on Draghi’s words, with a positive assessment of the higher inflation and upward reviews of GDP and inflation forecast, favoring further advances in the common currency: a break through 1.1200 then, should see the pair extending its rally up to 1.1260 in the short term, with chances to extend up to 1.1300 if US data, released alongside with the speech, results disappointing.”
“Should the ECB president focus on the Greek ongoing woes, or express its concerns over the rising exchange rate of the EUR, the risk will turn towards the downside, with a downward acceleration below 1.1120 signaling a bearish continuation towards the 1.1050 price zone.”
(Market News Provided by FXstreet)