EUR/USD: The decline increases, the market fears a meeting of the ECB’s dovish tone

© O Financista. EUR/USD continues its decline, the lowest since January 4 – The trend of the pair EUR/USD remains negative on Tuesday morning, with a new low on 1.1345, the lowest since January 4.

Investors seem to be cautious vis-à-vis the european currency, before the meeting of the ECB Thursday, which is likely to be dovish.

Many signs of an economic slowdown have indeed been made since the last meeting of the ECB, and there is a significant risk that the Central Bank underlines these risks, which would be a signal dovish disadvantageous for the Euro.

This morning, we learned that the European Commission has revised down its growth forecast 2019 0.6% only for Italy, which confirms that the commitments in terms of fiscal discipline that have been torn out in the country by the EU a few weeks ago (and after months of negotiations heated) are unlikely to be respected…

Today, the ZEW index of business climate in German will also refine the determination of deterioration of the european economy, with an index expected to have fallen to -18.4 points after -17.9 points one month earlier.

From a graphical point of view, the test of the support of 1.1345-50, this morning is a bearish signal. However, for the next support in the area of 1.13 can be referred to, a break-confirmed-below 1.1345 seems to be necessary.

In 1.13, the next support potential fall to 1.1270 and 1.1215, the low annual 2018.

The increase, 1.1370 is immediate resistance, before 1.1390-1.14, 1.1425, 1.1450, 1.1480 and 1.15 in a first time.

Finally, it should be noted that, outside the economic calendar, and expectations about the ECB meeting, other issues are likely to affect the pair EUR/USD in case of important statements, notably in respect of the Brexit, Trade War China-USA, or even the “shutdown” of the US government.

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