EUR/USD Set for Bearish Correction - ECB Policy Meeting Ahead

EUR/USD Set for Bearish Correction – ECB Policy Meeting Ahead

Posted Thursday, June 4, 2020 by
Arslan Butt • 1 min read

What’s up, traders.

The forex trading signals on EUR/USD have performed pretty well despite the market’s massive level of uncertainty. Today, we have opened another selling in trade to capture a quick correction in the direct currency pair.

EUR/USD dropped from a three-month high of 1.1257 but still traded above the 1.1200 level ahead of the key European Central Bank (ECB) monetary policy decision. From the American side, at 17:15 GMT, the ADP Non-Farm Employment Change for May was recorded as 2.76M job loss in comparison to 9.0M of expectations. AT 19:00 GMT, the ISM Non-Manufacturing PMI was surged to 45.4 against 44.2 of expectations and supported the US dollar. Though the data from America was also in support of the US dollar, the Euro got traction due to its risk-sensitive status amid the risk-on market sentiment and hence, pushed the pair to multi month highs on Wednesday.

On Thursday, the European Central Bank will announce its monetary policy decision, which is expected to include no change in interest rates, an expansion in the PEPP of worth 750 billion euros, more bond-buying from banks, etc. Market participants will be looking forward to it for fresh impetus.

EUR/USD Set for Bearish Correction - ECB Policy Meeting Ahead

Daily Technical Levels

Support Resistance

1.1181 1.1272

1.1128 1.1310

1.1090 1.1362

Pivot Point: 1.1219

On the technical front, the direct currency pair EUR/USD took a bearish turn to achieve 61.8% Fibonacci retracement at 1.1215 mark on Thursday. Presently, the 1.1215 mark is providing substantial support to the EUR/USD, and the breakout of this mark can prolong EUR/USD unto 1.1190 level. Whereas, it can surge north to target 1.12305 level only in case the pair breaks over 1.1212 level.

Good luck!

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