EUR/USD ahead of ECB announcement
The EUR/USD had a strong push higher on Wednesday reaching above 1.32 before re-tracing to give back most of the gains forming an impressive shooting star on the daily chart. Considering today’s much awaited ECB rate announcement, the pullback may be due to investors getting out of the market before the central bank meeting. The pair remains in a strong bullish trend and we don’t expect to see any lasting selling pressure, if the ECB opts for a 25bps cut, unless substantial non-standard easing comes along. If the market manages to break above the high of the shooting star at 1.324, that would open the door for the next key resistance area at 1.35. In the alternative scenario, watch out for a break below 1.31. In that case, the EUR/USD could face abrupt declines towards the 1.30 level.
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