Following the strong rally from late Tuesday, the EUR/USD pair is back in bearish mode, having erased pretty much all of its recent gains. The common currency is being hit by loud talks about a probable Greek default by the end of April has been weighing on the common currency ever since late Tuesday. Athens is due to pay the IMF €203m on 1 May and €770m on 12 May, and it won't be able to, unless the EZ feeds it with more bailout. Anyway, the ECB will have its economic policy meeting in a few hours, and indeed, Mario Draghi speech will gather most of the attention, as the Central Bank is likely to remain on hold.
The ECB's head will likely have a nice hawkish tone, celebrating the positive effects of QE, and is unlikely to comment on Greece, which may give the EUR temporal support, albeit the dominant bearish trend will prevail at the end of the day.
Technically the 4 hours chart shows that the price extended below its 20 SMA, whilst the technical indicators have turned lower around their mid-lines, supporting the ongoing negative sentiment. Nevertheless, is all about the ECB today, with a downward acceleration below 1.0540 required to see the pair extending towards the 1.0500 price zone, whilst beyond this last, the year low at 1.0460 is next. On the other hand, a recovery above 1.0650 should lead to a retest of yesterday's highs in the 1.0710 region, albeit further gains are not seen at this point.
View Live Chart for EUR/USD
The ECB's head will likely have a nice hawkish tone, celebrating the positive effects of QE, and is unlikely to comment on Greece, which may give the EUR temporal support, albeit the dominant bearish trend will prevail at the end of the day.
Technically the 4 hours chart shows that the price extended below its 20 SMA, whilst the technical indicators have turned lower around their mid-lines, supporting the ongoing negative sentiment. Nevertheless, is all about the ECB today, with a downward acceleration below 1.0540 required to see the pair extending towards the 1.0500 price zone, whilst beyond this last, the year low at 1.0460 is next. On the other hand, a recovery above 1.0650 should lead to a retest of yesterday's highs in the 1.0710 region, albeit further gains are not seen at this point.
View Live Chart for EUR/USD
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