EUR / USD rises to 1.1835 zone before ECB

Get real time updates directly on you device, subscribe now.

  • Widespread dollar decline boosts EUR / USD.
  • At 11:45 GMT the decision of the European Central Bank will be known.
  • Euro shows some weakness against GBP and CHF.

The EUR / USD is rising moderately on Thursday, before the decision of the European Central Bank is known (ECB). Having managed to hold above 1.1800, the pair reached a 1.1835 high for the day.

Before the ECB’s decision is known, it remains in the zone of maximums. The main support is being a weak dollar. The greenback is cutting with a streak of three days in a row with raises. The dollar index operates at 92.55, down 0.15%. This is accompanied by a decline in Treasury bond yields.

The key event of the day will be the ECB’s decision and Lagarde’s conference. Changes in the interest rate are not expected, although they are with respect to the purchase program. Analysts point to the possibility that the rhythm of purchases will be cut in the fourth quarter of the emergency purchasing program due to the pandemic. The expectation already makes us expect a jump in the volatility of the euro crosses at the time of the announcements (11:45 GMT) and at the Lagarde conference (12:30 GMT).

By the time the ECB president begins her presentation, the weekly report of initial requests for unemployment benefits in the US will be released, which is expected to show a small drop to 335,000. Several Federal Reserve officials will give presentations Thursday: Mary Daly (San Francisco Fed), Charles Evans (Chicago) and Michelle Bowman (Governor). Robert Kaplan (Dallas), Neel Kashakari (Minneapolis) and Eric Rosengren (Boston) will speak on racism and the economy.

Surviving over 1.1800

EUR / USD remained above 1.1800 and is on a bullish intraday tone. In case of losing 1.1805, an intensification of the downward pressures would be expected, enabling a fall towards the next support at 1.1785; below it will follow 1.1770. To the upside, the first barrier is seen at 1.1840 and just above the average of 20 on the four-hour chart, so a return above 1.1850 would be an event that would give the euro support for further rises. The next resistance is around 1.1875.

Technical levels

Source Link

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.