EURUSD correcting ahead of ECB Meeting is an indication of strong trend counter in the process. As per Bearish trend, the price failed to sustain the momentum to push lower. Let’s check EURUSD Technical Analysis for more levels and insights.
January 23, 2020 | AtoZMarkets.com – EURUSD is currently residing at the edge of 1.1100 area after bouncing off the 1.1075 area recently. The price having strong Bearish Trend is struggling ahead of ECB meeting. Though the overall trend is Bearish, certain Bullish intervention may occur along the way.
Today ECB President Christine Lagarde is going to set parameters for Euro Monetary Policy in the ECB Meeting. Currently, there is no expectation of any change of ECB’s interest rates but officials may discuss about Bank’s agenda. Christine may review the ease policy committed by Mario Draghi and any changes in the policy may lead to certain shock.
It is the first time since 2003, ECB agreed to review its strategy. Today, Christine is set to discuss on resetting the inflation goal of 2% and address the tools of the policy. Despite having improved Economic Prospects, Trade Tensions like U.S. China deal and BREXIT lead to certain struggle to make an impactful decision for the coming months. ECB Meeting today have great probability to inject more volatility in the EURUSD pair.
EURO to regain Momentum?
EURUSD has been struggling to push below 1.1075 area with a daily close recently. The price did have a strong non-volatile bearish trend in place but could not sustain it breaking below 1.1075 area. The price is currently correcting at the edge of 1.1100 having certain clue of Bearish Exhaustion around the support.
Image: EURUSD 1 Hour Chart
The price is currently starting to push higher after bouncing off the 1.1075 support area recently. While the price was correcting at the edge of 1.1075, MACD formed Bullish Divergence along the way. Though the price is currently residing inside the Kumo Cloud but have greater probability to push higher.
EURUSD is currently trying to break above 1.1100 area ahead of ECB meeting which can lead to a remarkbale Bullish counter in the process. The Chikou Span (Green Line) has also broken above the price line recently which also adds to the efficiency of the Bullish pressure in the making. As per current scenario, if the price manages to break above 1.1100 area with a daily close then further upward pressure with target towards 1.1175 to 1.1200 area is expected.
Read More – What to Expect from first ECB Meeting today?
EURUSD Head and Shoulder Failed?
Recently EURUSD formed Head and Shoulder Bullish Reversal pattern with neckline at 1.1075 area in the Daily chart. The price action looked very impressive around the area but today the price pushed higher bouncing off. Though the overall EURUSD pattern is still in the works but a break above 1.1100 with a daily close may elevate the Bullish momentum.
image: EURUSD Daily chart
Today, the price also found strong Bullish Trend line support while residing above the Kumo Cloud support. Moreover, MACD lines residing above 0.00 level while the price reside above strong support of 1.1075 is indicating upward pressures.
To Conclude, EURUSD is currently quite indecisive. No definite trend momentum can be seen in the chart. Today, a daily close above 1.1100 or below 1.1075 will provide the required price action to predict upcoming trend momentum in the pair. Currently, there are higher chance of EURO to regain momentum as ECB meeting unfolds.