On the eve of Washington, met US President Donald Trump with European Commission President Jean-Claude Juncker. They discussed trade relations between the US and the EU. Financial markets suggest that after the meeting of trade tensions between the US and Europe may be reduced. Financial markets have reacted very positively to the outcome of yesterday's talks between the US President and the President of the European Commission.
EURUSD The pair after the meeting rose about 50 pips to the 1.1680 level to 1.1730. However, I believe that this increase is due to not meeting between Donald Trump and Jean-Claude Juncker, and, most likely, it happened against the background of tension among financial participants in anticipation of the meeting of the European Central Bank. Just pair EURUSD on the eve of the ECB meeting starts behaving very volatile.
Today, it is desirable to pay attention to the following key events and makrostatisticheskie indicators:
At 14:45 (GMT + 3) The European Central Bank will publish its decision on monetary policy;
At 15:30 (GMT + 3) will host a press conference of the ECB's monetary policy;
At 15:30 (GMT + 3) will be published orders for durable goods in the US in June.
EURUSD forecast today
On the four-hour timeframe (H4) EURUSD pair is testing the upper line of the "descending triangle":
At hour timeframe (H1) EURUSD pair testing the level at which the previous two local peaks formed ( «Max 1" and "MAX 2"):
Key resistance in the pair EURUSD, in my opinion, is still at the level of 1.1824. At this level, the EURUSD was on the eve of the previous meeting of the ECB. Earlier, I explained.
In terms of graphical analysis or the H4, or on the H1 is no trend. So I will not comment open trade in the pair EURUSD. Wait until the ECB meeting and if the ECB does not change the rhetoric on monetary policy, I will look for an opportunity to open the deal to sell EURUSD. I wrote about this yesterday and explained why, with the foundation point of view, I believe that the dollar is more promising than the euro.
However, it should be explained, during today's publication of the decision on the monetary policy of the ECB and at the ECB press conference is expected to increase volatility. Therefore, even if the trades on sale, it will be after the volatility will decrease and the market will calm down.
At the time of writing the pair EURUSD is trading at 1.1728.
Forex Forecast EUR / USD Vesselin Petkov Alpari