EUR / USD is now trading in a very narrow range, waiting for the publication of data on US GDP.
On the eve of a meeting of the ECB at which the regulator decided to save the settings of monetary policy unchanged. The final statement of Mario Draghi said that the meeting will not focus on lowering rates, but in the future the regulator is ready to act decisively in the event of deteriorating economic situation in the region and reduce inflationary pressures. According to Draghi, in mitigation of the ECB monetary policy will not only cut interest rates, but also intends to carry out other incentives.
By and large the results of the ECB meeting did not surprise investors. The regulator gradually preparing markets for monetary easing that weakens the position of European currency in the medium and long term.
Today, the focus of market participants will be the primary assessment data rate of US GDP growth in the 2nd quarter. After growth at 3.1% in the first quarter now experts expect an increase in index of 1.8%.
The graph held retest 1.1100 level, from which the pair sufficiently strongly jumped up. But buyers are not able to develop this movement, so from the current levels are waiting for the further development of the downward movement within the dominant downtrend in the market. The next target is at 1.1080.
resistance levels EUR / USD: 1.1155, 1.1200, 1.1240.
Levels of support for EUR / USD: 1.1130, 1.1100, 1.1080.
The main scenario - reduction of EUR / USD to 1.1080.
Alternative Scenario - consolidation above 1.1155 and rising EUR / USD to 1.1200.
For the currency pair EUR / USD the fundamental backdrop remains negative. On the EUR / USD chart is dominated by bearish signals. Preference is given to intra-day sales EUR / USD, which should be seen in the level of 1.1155 area.
EUR / USD forecast and analyst FORTFS