EURUSD: Sees A Selling Opportunity On ECB Meeting!
The EURUSD remains on the downside, as long as trades below 1.1408 level -broken support turned resistance – on a daily closing basis, support comes at 1.1343 level, a halt is likely, it may test 1.1408 before a lower leg below 1.1343 level, anyway; below 1.1343 aims 1.1290 level, further down, support comes at 1.1179 level.
On the upside, resistance comes at 1.1408 level ahead of 1.1448/1.1462 levels, above 1.1462 sees a recovery threats to 1.1515 levels where rejection is likely, however; above 1.1515 level will extend the corrective recovery to 1.1577 level.
Conclusion: The EURUSD continues to face downside threats below 1.1515 level even in the case of a corrective recovery.
Note: The pair is very bearish below 1.1408 levels, above 1.1408 sees a recovery to 1.1462, above 1.1462 will extend recovery to 1.1515 level, above 1.1515 we have a light bullish trend, above 1.1515 may expose 1.1577 level…
Support: 1.1343, 1.1290, 1.1230, 1.1179
Resistance: 1.1408, 1.1462, 1.1515, 1.1577
- Germany will release data on the Ifo Business Climate Index at 08:00 GMT. The forecast is to slide 103.1, from 103.7 in the preceding month. A selling opportunity is likely, anyway; any reading below 103.1 will keep the EUR under pressure.
- European Central Bank Policy Meeting at 11:45 GMT. The central bank is expected to keep interest rates at their current record low levels at the conclusion of its monetary policy meeting. President Mario Draghi will hold a press conference 45 minutes after the interest rate announcement as investors seek more signals on when the central bank plans to start raising borrowing costs. Note that EURUSD is close to a critical support on weekly timeframe around 1.1435 levels, any unexpected news -surprises -from Draghi may bring a strong rebound to the upside.
- The U.S will report on Durable Goods Orders (Sep) at 12:30 GMT. The forecast is to fall -1.0%, from 4.4% in the preceding month. Core Durable Goods Orders is expected to rise by 0.5%, from0.1% a month earlier. Any reading above forecast will support the USD.
- FOMC Member Clarida Speaks at 16:15 GMT.
- FOMC Member Mester Speaks at 23:00 GMT.
The Result: Despite the pair is around weekly support at 1.1435 level, I think ECB can’t save the EUR or at least still early to talk about a reversal, anyway; I think any upside will be limited by/below 1.1515 levels. Most likely, the pair may fall without any rebound!!!