Euro in focus into the ECB Meeting (EURUSD forecast)

Intermediate
  • Today’s ECB meeting in the central bank and fundamental spotlight today.
  • No significant announcement is expected, but nerveless, EURUSD is poised at key support levels (see below).
  • In addition, the US Dollar retains a safe haven positivity against most currencies (apart from the Japanese Yen), with increased concerns regarding the Chinese Wuhan coronavirus.

EURUSD day trade outlook: Intermediate-term bear threat to key 1.1065

A Wednesday push lower to just hold at the up trend line from early October and the key 11.065 December swing low, retaining negative forces from Tuesday’s stall back from a prod at our 1.1115 resistance up to 1.1118, PLUS from Monday’s prod below 1.1084 swing support to 1.1075, AND last Friday’s plunge below the neckline to a Head & Shoulder topping pattern, to keep risks lower into Thursday. 

  • We see a downside bias for key 1.1065; a break below aims 1.1038, maybe 1.1001.
  • But above 1.1115/18 targets 1.1141/43; above opens risk up towards 1.1173.

Intermediate-term outlook

An early December surge through the key 1.1097 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for 1.1239/50 and 1.1322.

What changes this? Below 1.1065 shifts the intermediate-term outlook to an intermediate-term bear theme.

EURUSD Forex Chart

EURUSD chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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