Taking a Shot Just Ahead of the ECB
The ECB meeting is coming up and EUR/USD has retraced higher ahead of the meeting. But the pressure still remains to the downside
The European Central Bank (ECB) meeting will take place shortly. Expectations are mixed for this meeting – some analysts expect the ECB to announce a date for the start of another monetary stimulus package, such as a rate cut or a QE programme, or both.
Others think that the ECB might hold on to its cards just one more time. So, nothing is written on the stars. Although, considering the economic weakness in the Eurozone and the softening inflation, the ECB should start acting. But, you never know.
Anyway, EUR/USD climbed from 1.0980s yesterday to 1.1030 this morning and we decided to use this opportunity to go short on this pair. The price was finding resistance at the 100 ma (green) and the stochastic indicator is overbought, which means that the retrace higher is complete.
The ECB might send the Euro in either direction later, but the pressure is on the downside. However, let’s wait and see if the ECB will take our side today.
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