© O Financista. The fate of the Euro will depend on the ECB today
Investing.com – This day, Thursday, January 24, 2019 will be critical for the EUR/USD pair, with a current particularly dense, after a start of the week rather quiet.
Recall that yesterday, the pair EUR/USD had made progress in the afternoon, in the face of a sudden decline in the Dollar, but today, it is on the european side of the equation, traders will focus.
The ECB meeting is expected this afternoon, with the announcement of the rate at 13.45 pm and the press conference of Mario Draghi from 14: 30, could significantly influence the Euro.
Recent signals – and concrete evidence – of a global economic slowdown prompt investors to anticipate a meeting of the ECB’s dovish tone, which could be used to prepare the ground for a future announcement of the postponement of the scheduled date for the first rate increase to 2020.
Remains, however, to confirm that Dragi will be as dovish than what investors expect. It is not excluded that the ECB ignores more or less the deterioration in the global economy in his speech, waiting for the first economic data of the Q1 2019.
In this regard, the european PMI indexes will be published in the course of the morning will be the first significant step of the european economy to 2019. The German indices are expected at 9: 30, while those of the euro area as a whole are scheduled for 10 am.
From a graphical point of view, it will be recalled that the rise of yesterday has given place to a signal technical uptrend, the EUR/USD pair being passed back above its moving average 100 hours for the first time since the 11 January.
However, a triple resistance bar the road in the short term, with the sommest yesterday 1,1393, the moving average 200 hours to 1,1398, and the psychological threshold of 1.14.
Elsewhere, the EUR/USD pair is weakening this morning at the beginning of the european session, attempting to drop below the moving average 100 hours and under the threshold of support of 1.1370. If these breaks are confirmed, the next support to watch will be 1,1350, 1,1335, 1,13, 1,1270 and 1,1215, the low of last year.
Has the upside, the resistances that are likely to block the EUR/USD in case of a rebound are 1.1370, 1.14, 1,1425, 1,1450, 1,1480, 1,15, 1,1540, 1,1570 and 1.16.
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