Key Levels in the EUR/USD as ECB Looms

Yesterday it was all about the FOMC minutes. On Thursday our attention turns to the ECB. The FOMC minutes saw a whipsaw in the USD, with momentum eventually returning to the upside.

I don’t think we are going to get too many fireworks from the ECB today as Draghi has really been trying to keep his options open and has talked down any major changes.

While it would be exciting to hear some sweeping changes to monetary policy, I just can’t see that happening. Short of it being an absolute non-event, we still need to prepare as if there might be some big moves.

Major Levels

Overhead resistance at 1.2500, now looks a very long way off. As the USD rallies, it’s the key support levels that will be in focus for us.

1.2200 is the major level below us that will be offering up some support. As it stands we are sitting right on support and the major trendline. I do feel that we can bounce off this level.

1.2277 is a minor support level that has the potential to hold up. I wouldn’t want to go too far below this though.

Like I said earlier, I’m not expecting big things from the ECB today, so technicals might be useful today as I suspect fundamentals will be light.

EUR/USD – 240 min Chart.