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The FxPro Analyst Team

Forex: EURUSD Trades Below Significant Resistance Before ECB Announcement

The Italian referendum weighed on EUR/USD, fell to a year low of 1.0506 on 5th December.

It was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500. Yet it retraced after testing the significant resistance level at 1.0800.

On 6th December, EUR/USD has rebounded after testing the support level at 1.0700 with strong bullish momentum, as a result of the weakening of the dollar.

On the 4 hourly chart, the price has been held above the 10 SMA, the trend has remained upwards,

Yet the current price is testing the resistance level at 1.0800 again. The selling pressure is heavy at this level, be aware of a retracement.

The 4 hourly Stochastic Oscillator is nearly 90, suggesting a retracement.

The resistance level is at 1.0800, followed by 1.0850 and 1.0880.
The support line is at 1.0750, followed by 1.0720 and 1.0700.

The ECB will announce interest rate decision at 12:45 GMT today. More importantly, the ECB President Draghi will make a speech at 13:30 GMT. He will likely introduce an extended period of the current QE programme, which will likely cause downward risk to the Euro.

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