The Euro is trading higher shortly before the release of the European Central Bank (ECB) interest rate and monetary policy decision as well as President Mario Draghi’s press conference.
The ECB is widely expected to keep policy on hold on Wednesday, taking a break from its recent decision to implement more stimulus measures. ECB policymakers are likely to discuss market speculation about further delays to their first post-crisis rate hike and the side effects of years of negative rates.
At 10:50 GMT, the EUR/USD is trading 1.1277, up 0.0014 or +0.12%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1184 will change the main trend to down. Taking out the March 7 bottom at 1.1177 will reaffirm the downtrend. This could trigger an acceleration to the downside. The nearest main top is 1.1448.
The minor trend is also up. This is helping to generate the current upside momentum.
On the downside, the support is the major Fibonacci level at 1.1185.
The main range is 1.1448 to 1.1184. Its retracement zone at 1.1316 to 1.1347 is the next upside target. Look for sellers on the first test of this zone.
Daily Technical Forecast
If the upside momentum continues then look for a rally into the resistance cluster at 1.1297 to 1.1298. Look for sellers on the first test of this area. Overcoming 1.1298 could trigger a surge into the 50% level at 1.1316. Overcoming this level could trigger an acceleration into the Fibonacci level at 1.1347.
If the momentum reverses to the downside then look for a pullback into an uptrending Gann angle at 1.1244. This is followed by a longer-term uptrending Gann angle at 1.1237. If this angle fails then look for an extension of the selling into the next uptrending Gann angle at 1.1214. This is the last potential support angle before the 1.1185 Fibonacci level, the 1.1184 main bottom and the 1.1177 main bottom.
This article was originally posted on FX Empire
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