The euro currency has started to recover above the 1.1500 resistance level against the US dollar after sellers failed to move price below the 1.1431 support level. What should traders expect next? EURUSD technical analysis reveals.
22 October, OctaFX – The euro jumped and then pared gains at the open of the Asian session. This was as traders looked ahead to the upcoming interest rate decision by the ECB and the start of EU and US negotiations on trade.
The ECB is expected to leave interest rates unchanged and issue forward guidance on the fate of the quantitative easing program and future interest rates. Previously, the bank said it would end QE in January and start raising rates after summer next year.
Last week, US Commerce Secretary, Wilbur Ross warned his EU counterpart, Cecilia Malmstrom, that US President Donald Trump will not tolerate any kind of delay. In July, the US President made a deal with the President of the European Commission to ensure zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.
EURUSD Technical Analysis
The EURUSD pair jumped sharply at the start of the Asian session. It reached an intraday high of 1.1570, which was the highest level since Wednesday last week.
These gains were short-lived and the pair fell to a low of 1.1497 and then started to move up. The biggest mover for the pair this week will be the ECB decision and the US GDP numbers.
When the pair jumped today, the price moved above the upper band of the Bollinger Bands and is currently along the upper band. There is a likelihood that it will attempt to recover some of these gains today.
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