Fundamental analytics

EUR / USD: investors took a wait and see attitude before the ECB meeting

EURUSD

The EUR / USD pair is still trading in a very narrow price range, awaiting a meeting of the European Central Bank at which, most likely, a decision will be made on a serious easing of monetary policy. In current quotes, a possible decrease in the interest rate by 0.1% has already been taken into account. The likelihood of a stronger rate cut, by 0.2%, is estimated at 45%.

Against the background of continuing uncertainty, most investors took a wait and see attitude, trying to understand what measures the ECB and the Fed will use to stimulate the economy in the face of continuing tensions in international trade and low inflation.

Today, there is still very little important news in the US and EU economic calendar. The most influential effect on trading may have data on the producer price index in the United States. But, most likely, the level of volatility will remain low and the currency pair will continue mainly lateral movement in the range of 1.10-1.11.

There were no significant changes on the chart over the past day. The currency pair continues to consolidate in the middle of the range 1.1015-1.1085. Today we are waiting for the continuation of the sideways within the marked range.

Resistance levels: 1.1060, 1.1085, 1.1155.

Support levels: 1.1015, 1.0965, 1.0900.

The main scenario is consolidation in the range 1.1015-1.1085.

An alternative scenario is a breakdown of support at 1.1015 and a decline to 1.0965.

The market keeps mostly neutral fundamental background. On the chart, consolidation continues in the range 1.1015-1.1085. Inside the day, you can consider both longs and shorts of the currency pair from the borders of the horizontal channel.

 

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