EUR/USD Trades Below the 20 Daily SMA Ahead of the ECB Presser
EUR/USD has formed a bearish reversing chart setup on the daily time-frame but markets are waiting for Draghi's speech now
The European Central Bank (ECB) left interest rates unchanged just a while ago, with refinancing rates at 0.0% and deposit rates at -0.40%. They pledged to keep interest rates unchanged throughout the end of this year, confirming again that there will be no rate hike this year.
The press conference from Chairman Mario Draghi will begin shortly and the Euro seems to be waiting for it. EUR/USD is trading below the 20 SMA (grey) as you can see from the daily chart above. The picture now points to a bearish reversal because stochastic is overbought now.
Besides that, yesterday’s daily candlestick closed as a doji which is a reversing signal after the bullish retrace higher so far this month. The price is much lower from the 1.1400-50 level where we have seen this pair reverse in the previous months, but the ECB has turned dovish now from neutral a month ago, so expect the Euro to be more bearish than previously and the highs to move lower. So, a bearish reversal now is pretty much on the cards but everyone is waiting for Draghi to send this pair lower, so tick-tock.
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