InstaForex

October 28, 2021

EUR/USD Is Preparing For More Vigor Ahead Of ECB Meeting Today

 The long -awaited day has arrived!


The throbbing ahead of the release of US Gross Domestic Product (US) data as well as the outcome of the European Central Bank (ECB) policy meeting tonight (Thursday) seems to be being felt more and more.


The ECB’s previous dovish statements further reinforced expectations that the central bank is expected to maintain policy policy while GDP data will be an indication of US economic growth.


US treasury yields were seen falling to 1.5% to drag down the weaker USD but as a safe-haven currency, the USD remained resilient due to risky market sentiment.




If you look at the chart of the EUR/USD pair, it seems that the price trend rebounded before plunging again in the New York session yesterday (Wednesday) and remained moving horizontally.


The price movement also continues to be turbulent and hovering at the level of the Moving Average 50 (MA50) barrier in the 1 hour timeframe and continues to trade in the SBR (support become resistance) zone of 1.16000.



Entering the Asian session today (Thursday) heading into the close of trading this week, prices jumped slightly and will look forward to the release of data tonight for a more brisk movement.


Assuming the price movement trend returns making a plunge it is likely that the 2021 lows recorded in mid -October at 1.15300 will continue to be the focus zone to be tested.


The latest lows are expected to be created again if the price continues to decline which is likely to reach the 1.15000 support zone which was the hardest to break in the previous trading session.


If the pattern of price movement flies again, the high of 1.16700 which often restrains the price surge to be reached again before climbing high to the resistance zone of 1.17000.