With just minutes to go before the European Central Bank (ECB) announces its highly anticipated rate decision, market participants are maintaining a cautious stance. The EUR/USD pair remains relatively calm, reflecting a wait-and-see approach ahead of the official release.
According to broad market consensus, the ECB is expected to implement a 25-basis point rate cut. This move would bring the key deposit rate down to 2.00% and 2.15% main refinancing rate, in response to the eurozone's recent disinflation trend.
Following the rate announcement, ECB President Christine Lagarde is scheduled to hold a press conference, during which she is expected to provide detailed insights into the reasons behind the committee’s decision. Investors and analysts alike will closely scrutinize her statement for forward guidance particularly any indication of whether today’s cut is a one-off adjustment or part of a broader easing strategy going into the second half of 2025.
On the other hand, U.S job report would be on the wire tomorrow by 4:30PM GMT +4, this data point also has the tendency to cause market volatility and as such, traders are advised to pay close attention.
The pair has been trending upward on the 4-hour timeframe, forming a series of higher highs and higher lows while consistently respecting its ascending trendline and above EMA 50. Price is currently facing resistance around 1.1439, as traders await the next major catalyst, the ECB rate decision.
LEVELS TO WATCH OUT:
If the bullish momentum continues, a brake above 1.1439 would potentially target 1.1481 and 1.1547 according to analyst. On the flipside, if sellers’ step in and pushes prices down, a break below 1.1411, would potentially target towards 1.1367 which would have served as break of the trendline and then potentially tank to 1.1229 according to analyst. Breakout of these levels are not ruled out.
According to broad market consensus, the ECB is expected to implement a 25-basis point rate cut. This move would bring the key deposit rate down to 2.00% and 2.15% main refinancing rate, in response to the eurozone's recent disinflation trend.
Following the rate announcement, ECB President Christine Lagarde is scheduled to hold a press conference, during which she is expected to provide detailed insights into the reasons behind the committee’s decision. Investors and analysts alike will closely scrutinize her statement for forward guidance particularly any indication of whether today’s cut is a one-off adjustment or part of a broader easing strategy going into the second half of 2025.
On the other hand, U.S job report would be on the wire tomorrow by 4:30PM GMT +4, this data point also has the tendency to cause market volatility and as such, traders are advised to pay close attention.
The pair has been trending upward on the 4-hour timeframe, forming a series of higher highs and higher lows while consistently respecting its ascending trendline and above EMA 50. Price is currently facing resistance around 1.1439, as traders await the next major catalyst, the ECB rate decision.
LEVELS TO WATCH OUT:
If the bullish momentum continues, a brake above 1.1439 would potentially target 1.1481 and 1.1547 according to analyst. On the flipside, if sellers’ step in and pushes prices down, a break below 1.1411, would potentially target towards 1.1367 which would have served as break of the trendline and then potentially tank to 1.1229 according to analyst. Breakout of these levels are not ruled out.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.