- The EUR / USD rally is intact as long as it remains above the 200 hourly SMA.
- The RSI on the 1-hour chart is pointing higher above the 50.00 level.
- Will it maintain the rebound ahead of the expected stimulus from the ECB?
EUR / USD is climbing to daily highs once again above 1.2100, as the recovery from Wednesday’s corrective decline gains traction ahead of the all-important monetary policy decision by the ECB.
The ECB is expected to boost stimulus to support economic recovery. However, the central bank’s projections and President Christine Lagarde’s comments on the strength of the euro will be important for the new direction of the common currency.
From a short-term technical perspective, the bounce in the currency pair could likely remain intact as long as the bulls manage to defend the upward sloping 200 hourly moving average at 1.2083.
A breakout of this level could jeopardize Wednesday’s low of 1.2059.
On the other hand, recovering the horizontal 50-hour SMA at 1.2105 again is essential to extend the recovery towards the 100-hour SMA at 1.2117.
Higher up, the pair could point to the confluence of Wednesday’s high and round level at 1.2150.
The Relative Strength Index (RSI) on the 1 hour chart is pointing higher above the midline, currently at 57.73, allowing room for further rises.
EUR / USD 1 hour chart
EUR / USD technical levels
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