EUR/USD still at daily resistance into ECB
Now that the session's only euro specific data is out of the way, lets have a look at the charts as the pair positions itself into the ECB meeting tomorrow.
We do have Trump and Juncker meeting in Washington during the US, but I'm more than willing to bet that we'll get headlines that the market already knows or expects. If I'm sick of them, then the market certainly is, so keep your attention on Draghi.
So, I kicked things off in the earlier daily market themes blog and then posted a daily chart in the earlier forex majors overview blog. The following thoughts were attached:
"It's the upper, descending trend line that price has most recently rejected off and it seems that we're going to probably head into the ECB tomorrow all coiled up.
I like this."
I like this one indeed. Take a look at the daily chart again:
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You can see that as I said before, price is sitting nicely at resistance which it has at least initially been rejected away from. In terms of a higher time frame look, you would say that price is sitting at resistance.
This is my important take away from the daily chart.
With potential data spikes out of the way, price has a clear run into the ECB tomorrow and the question becomes, can you see price being bullish enough tomorrow, that it's going to want to push through in anticipation of that fact, tonight. My answer is probably not.
Zoom into the hourly:
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On the intraday chart, I had been speaking about looking for a stepping pattern to form as price is rejected off resistance, but we're literally stuck in around a 50 pip range and it's just not bearish enough for that trending price action to form.
So my takeaway is that I can't see EUR/USD going gangbusters into the ECB and the lower risk play is probably to the downside as a result of sitting closer to daily resistance.
What are your thoughts? Share a chart in the comments?
