EUR/USD: indecision is gaining ground on the Euro on the eve of the ECB

© O Financista. The trend of the EUR/USD is becoming increasingly uncertain – The trend seems to be leaning more and more towards the consolidation for the EUR/USD pair on Wednesday morning, after about two weeks of decline, and despite the new lows marked yesterday.

Since the beginning of the week, the economic calendar is relatively empty and the absence of news influential incentive for traders not to over-commit in one direction or another.

To a meeting of the ECB’s dovish tomorrow?

This behavior is also linked to the perspective of the ECB meeting scheduled on Thursday, and for which investors expect a tone dovish, after several signs of an economic slowdown around the world since the last meeting of the ECB.

Indeed, the growth of china, which was displayed at their lowest since 1990 for the numbers of all the year 2018, and the lowering of forecasts of global growth in the IMF, for example, is the two indexes of the most recent warning of a deteriorating global economy.

If the ECB highlights the decline in economic growth in its statement tomorrow, it will be considered as a signal dovish which will push even more the expectations for the first rate increase from the ECB, probably in 2019, which would penalize the single currency.

Waiting to know more on what prepares the ECB, investors are cautious, and this should remain the case today with an economic calendar is almost empty, at least as regards the events potentially influential on the Euro-Dollar.

Technical update EUR/USD

From a graphical point of view, the underlying trend remains negative, but through immediate tends toward consolidation. The first support to take into account will be the lows from yesterday to 1,1335, before the psychological threshold of 1.13, 1,1270, and the low annual 2018 to 1,1215.

Has increased, there has been a zone blocking around 1,1370 these last days, a resistance reinforced by the proximity of the moving average 100 hours currently to 1,1376. Then, it is the psychological threshold of 1.14 which should be taken into account, before 1,1425, 1,1450, 1,1480 and 1.15.

A break above 1.15 would be a bullish signal significant which could lead to a further rise towards the next resistance at 1,1540, 1,1570 and 1.16.

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