The Euro Continues Its Negative Path Awaiting ECB

The single currency continued its negative movements within the expected downward path, approaching the critical level of 1.1720, and flirting with session low at 1.1749.

Technically, today’s trading is witnessing attempts to re-test the previously broken support, which became a resistance level at 1.1855/1.1850, which is also the broken support line for the Ascending channel.

Taking a look at the 240-minute chart, we see that the 50-day moving average is still putting pressure on the price with some negative signs on Stochastic.

By continuing to trade below 1.1855, the bearish scenario will remain intact, and we maintain the negative outlook to visit 1.1720, retracing 23.60%.

When breaching 1.1855 resistance level and consolidating above it, chances of a reversal will be postponed and we may witness a bullish bias to 1.1885 and may extend to 1.1920.

Bear in mind that the markets are waiting the monetary policy statement followed by the European Central Bank press conference, which may have an impact on the single currency.

S1:  1.1760	R1: 1.1855
S2: 1.1720	R2: 1.1885
S3: 1.1665	R3: 1.1930