The ECB is expected to shed light on its recently announced open-ended, €1 trillion QE program this Thursday, with the EUR trading at an over 11-years low against the greenback ahead of the news. The EUR/USD pair broke lower on Wednesday, driven by a mixture of weaker European data, and the anticipation of a strong US job report on Friday. Also, technical stops were triggered, fueling the slide that extended during the Asian session down to 1.1025.
The bearish trend that dominated the pair since mid 2014 remains firm in place, and seems whatever the ECB announce today, will only back it up. Of course the pair can react surging with the release on profit taking, relief, of whatever you want to call it, but remember, the dominant trend is bearish, and selling interest will likely surge at higher levels, once the dust settles.
Technically, the 4 hours chart shows that the price consolidates near the lows, with the 20 SMA well above the current level, at 1.1160. The momentum indicator heads lower below 100 whilst the RSI indicator also heads south around 25, all of which support further declines: a price acceleration through the 1.1000 figure should see the pair extending its decline towards the 1.0960 price zone, whilst beyond this last, additional declines can be expected down to 1.0920.
To the upside, the immediate resistance stands at 1.1085, with a steady advance above it pointing for a possible test of the mentioned 1.1160 level, where selling interest is expected to resume should the level is reached.
View Live Chart for EUR/USD
The bearish trend that dominated the pair since mid 2014 remains firm in place, and seems whatever the ECB announce today, will only back it up. Of course the pair can react surging with the release on profit taking, relief, of whatever you want to call it, but remember, the dominant trend is bearish, and selling interest will likely surge at higher levels, once the dust settles.
Technically, the 4 hours chart shows that the price consolidates near the lows, with the 20 SMA well above the current level, at 1.1160. The momentum indicator heads lower below 100 whilst the RSI indicator also heads south around 25, all of which support further declines: a price acceleration through the 1.1000 figure should see the pair extending its decline towards the 1.0960 price zone, whilst beyond this last, additional declines can be expected down to 1.0920.
To the upside, the immediate resistance stands at 1.1085, with a steady advance above it pointing for a possible test of the mentioned 1.1160 level, where selling interest is expected to resume should the level is reached.
View Live Chart for EUR/USD
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