EUR/USD Pre-ECB Analysis: Important Forex Levels To Watch
Today, there will be an important ECB meeting where ECB should announce a minimum bid rate which is expected to remain on hold. But as always, ECB conference is very important as investors are actually waiting for any additional cues from Mr. Draghi about further economic measures. China slowdown, oil price, Stock markets, among other things have influenced a strong risk aversion and after the initial drop the EUR/USD has been ranging for 6 weeks. The ECB bid rate announcement is scheduled for 12:45 GMT and conference will start 45 minutes later.
The range can be easily spotted on H4 chart. The main range is 1.0984-1.0802. Now depending how investors interpret Mr. Draghi speech we might see either a break of 1.0984 or 1.0802- the main range. A hawkish stance could propel the pair within 1.0925-35 zone and above it we should see 1.0984 and 1.1050. Extremely HAWKISH stance might even target 1.1100. Dovish stance should tank the pair towards 1.0850 zone and below 1.0850 we should see 1.0802 with 1.0770 if it breaks. Extremely dovish stance could pull the pair down to 1.0700 zone. We need to pay attention to these levels as today’s ECB conference would probably mark a new trend.
EUR/USD 4-Hour Chart