EUR/USD: Dovish ECB meeting to drag the pair below the 1.16 level – Scotiabank
|EUR/USD is steady to marginally higher with the 1.16 zone acting as an anchor against broad losses in the dollar today. According to economists at Scotiabank, markets may be preparing for another dovish European Central Bank (ECB) meeting this week, which would leave the pair pointing to losses extending below the 1.16 mark.
Room for EUR gains is limited
“Even a moderately less dovish statement will stand starkly in contrast to next week’s Fed decision, so room for EUR gains is limited and selling the currency on a post-ECB gain is the most sensible strategy.”
“EUR/USD is currently trading against ~1.1620 resistance to be followed by the mid 1.16s zone that stands as a clear area to breach that would signal a firmer rejection of downward pressure – resistance at 1.17 (50-day MA at 1.1702) follows.”
“Support is 1.1572 after the 1.16 area.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.