The EURUSD pair was trading flattish on Thursday and the euro was hovering around 1.2170 during the London session.
Later in the day, the ECB is widely expected to leave rates unchanged and the main refinancing rate will stay at 0.0%, while the deposit rate will be kept at -0.4%. However, the most focus will be on the following press conference, where the ECB might sound dovish, mainly due to the recent slowing in the euro zone’s growth momentum. Therefore, the QE withdrawal could be delayed, and rate hikes could be postponed till late 2019. Volatility will probably be elevated during the press conference.
From the US dollar perspective, investors will focus on durable goods orders, which should come way below last month’s figures. This could be negative for the US dollar and might halt its current uptrend.
The pair declined below the 100 day moving average on Wednesday and was testing the last key support of previous near 1.2150. Should this fall, the bullish trend would be cancelled and the single currency might decelerate to the 200 day moving average located at 1.20.
On the other hand, the resistance for today’s trading is seen at the 100 day average at 1.2220 and if conquered, bulls could push the pair toward the 1.23 mark. In all cases we strongly recommend to have rigorous money and risk management.
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