EUR/USD eagerly awaits ECB Monetary Policy Stance

FXOpen

Euro fell broadly against the US Dollar (USD) last week before finding support near the 50% fib level; the shared currency is expected to hold range ahead of the European Central Bank (ECB) monetary policy statement which is scheduled on Thursday, EUR/USD might begin steep correction if the central bank adopts QE or negative deposit rate to cope with the falling inflation across the Eurozone.

Technical Analysis

The pair closed last week at 1.3754, well above the 50% fib level, showing considerable signs of bullish momentum. The pair is expected to find hurdle near 1.3779, 38.2% fib level, ahead of the channel resistance which is currently sitting in around 1.3880. A daily close above the channel could push the pair into stronger bullish momentum, exposing fresh multi-month highs above the 1.3966 level.

euro

On the downside, the pair is likely to find support near 1.3700-30 that is a confluence of the 55 daily Moving Average (DMA), Psychological Level and 50% fib level, ahead of 1.3662 that is the channel support, 100 DMA and 61.8% fib level. A daily closing below the channel support is required for further dips towards the 1.3500 handle or even below.

Eurozone Inflation

On Monday, EuroStats will release the Consumer Price Index (CPI) report—a main gauge for inflation—for the month of March. According to forecast, CPI declined to 0.6% in March as compared to 0.7% in the same month of the year before, worse than expected actual outcome will be seen as bearish for EUR/USD and vice versa.

Unemployment Report

On Tuesday, Bundesagentur für Arbeit will release Germany’s unemployment rate data for March. The seasonally adjusted unemployment rate remained steady at 6.8% in March as compared to the same rate in the month before, median projection of different analysts says.

ECB Monetary Policy

On Thursday, ECB is due to release the monetary policy statement followed by the press conference. Analysts believe that the central bank might announce some new policy measures such as QE, negative deposit rate or another rate cut to deal with the falling inflation. 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

The Dollar is Corrected after the Comments of the Head of the Federal Reserve USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar Market Analysis: EUR/USD Nosedives While USD/JPY Extend Rally Analysis: EUR/USD Close to Year’s Low after ECB Decision USD/JPY Rises to Highest Since 1990

Latest articles

Commodities

Since the Start of the Week, Brent Oil Price Has Dropped over 4%

At the beginning of the week, March 15, we wrote that the price of Brent oil could form a correction from the resistance level of USD 91 per barrel. Since then, the price has decreased by more than 4% due

Fair Value Gaps vs Liquidity Voids in Trading
Trader’s Tools

Fair Value Gaps vs Liquidity Voids in Trading

Understanding fair value gaps and liquidity voids is essential for traders seeking to navigate the complexities of the financial markets. These concepts, deeply rooted in the Smart Money Concept (SMC), provide valuable insights into the dynamics of supply and demand,

Indices

UK100 Share Index Rises as UK Inflation Slows

Yesterday, the UK Office for National Statistics (ONS) reported that the CPI stood at 3.2% in March. According to ForexFactory, analysts expected 3.1%, and a month ago the index was 3.4%.

Grant Fitzner, chief economist at the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.