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Euroidea

European Session EURUSD eye on ECB & US CPI DataEURUSD Technical Overview: Pivot: 1.1610 Key Resistance: 1.1655 - 1.1678 - 1.1700 - 1.1734 Key Support: 1.1600 - 1.1574 - 1.1555 - 1.1528 Technical Indicators: RSI: Indicator shows upside bias, moving above 50 level. MACD: MacD having buyer side volume. Moving Avg: SMA100 (1.1617) & SMA55 (1.1603) support for the day. Technical Most Likely Scenario: long @ 1.1627 with targets @ 1.1650 & 1.1670 in extension. Technical Alternative scenario: below 1.1610 look for further downside with 1.1585 & 1.1570 as targets. Fundamental: The EUR/USD has cleared a key trendline resistance, possibly on renewed hopes of US-China trade talks. The ECB is widely expected to keep rates unchanged, so the focus is on the latest staff forecasts and Draghi's tone at the presser. The markets are expecting President Draghi to sound dovish today, courtesy of the recent slide in inflation. More importantly, the ECB's QE tapering is set to begin next month and hence, the bank will likely adopt a dovish stance to cushion the bond markets and the economy from the impact of the drop in the bond purchases. As a result, the bull breakout witnessed in the EUR/USD 4-hour chart could fail, especially if the US August CPI, due at 12:30 GMT, beats estimates by a wide margin, reinforcing hawkish Fed expectations. On the other hand, if Draghi sounds neutral/hawkish, then the common currency could quickly jump to the recent highs above 1.1700. Thanks YoCryptoManic
Long
by yoCryptoManic