Euro Edges up Ahead of Tonight’s ECB Meeting
|S1: 1.1875||R1: 1.2000|
|S2: 1.1750||R2: 1.2075|
|S3: 1.1460||R3: 1.2250|
The open of the US market on Tuesday has failed to stimulate the lacklustre price action on the EURUSD, with the pair trading in a tight range over the last 48 hours. The general consensus is that the ECB may not reach a decision on QE before the end of October, which is weighing on the minds of traders looking for some short-term direction.
The volatility in the EURUSD has remained low in the last 48 hours, with the 4 hourly MACD, Stochastic Oscillator and the RSI still hovering in the middle of their boundaries. The trend line that is still in place has held its ground, but with no substantial selling pressure. The 15-minute chart displays a stochastic oscillator cross in the oversold region, which may help propel this pair up to test the 1.2000 resistance this week.
Traders of the EURUSD remain on standby for the Minimum Bid Rate and the ECB press conference tonight, closely followed by the unemployment claims in the US. Any guidance from the ECB as to when a QE decision will be made could see a significant increase in the EURUSD volatility, which will be necessary to break the overhead resistance zone of 1.2000.