Heads Up: ECB Rate Due in 30 Mins – Trading EUR/JPY on News - Forex News by FX Leaders

Heads Up: ECB Rate Due in 30 Mins – Trading EUR/JPY on News

Posted Thursday, July 25, 2019 by
Arslan Butt • 1 min read

In less than 30 mintes, the European Central Bank will be releasing its interest rate decision which is likely to be dovish in nature. ECB is expected to diminish its deposit rate from -0.4% — already a record low — to -0.5% crossed above the 50% threshold for the first time. As per the Bloomberg figures, ECB threshold was about 25% a month ago, and less than 10% at the start of June.

Swiftly moving to EUR/JPY chart, the pair is following a tight trading range of 120.550 to 120.200. In case the ECB decides to cut rates, we may see a sharp drop in EUR/JPY cross, and it may head lower to target 120 and even 119.600 today.

Support Resistance
120.28 120.67
120.05 120.83
119.66 121.22
Key Trading Level: 120.44

Whereas, the decision to keep rates unchanged may trigger buying in EUR/JPY above 120.300. The idea will be to capture an initial spike with a target of 120.500 and 120.700 today.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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