EUR/USD prepares for EU Min Bid Rate
Updated
Morning outlook - EUR/USD prepares for EU Min Bid Rate
- As it was expected, a pressure from a combination of the 55-, 100- and 200-hour SMAs neutralized any further attempts of the currency pair to slip to the bottom. The exchange rate even managed to from a junior ascending channel and bypass the weekly PP at 1.1918, fluctuating within it.
- Today will be the next day for the Euro due to announcement of the EU Minimum Bid Rate and the subsequent ECB press conference. Usually, this event leads to very strong traders’ reaction on it. In this context, the pair is expected to make a substantial advance today.
- Given a reaction to Draghi speech at the Jackson Hole Symposium two weeks ago, the Euro should appreciate today as well.
- The same direction is also seen from hourly and daily chart perspectives.
Trade closed: target reached
EUR/USD surges as Draghi speaksIn result of announcement of the EU Minimum Bid Rate as well as the subsequent Mario Draghi press conference, the Euro expectedly broke to the top and appreciated against the Greenback by 1%.
Today, two scenarios might happen. First, once the markets will calm down the buck might make an attempt to recover, thus dragging the pair back to the weekly R1 at 1.2013. But most likely the currency rate will continue the surge towards the monthly R1 at 1.2099.
If this target will be reached, the will be another two options. Either the pair will make a rebound from the upper trend-line of a medium-term ascending channel, or it will continue to soar in a junior ascending channel towards the northern boundary of a long-term formation.
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