- The EUR/USD pair seems buoyant after the ECB.
- Escaping from the current chart pattern could bring new trading opportunities.
- Only a new higher high could activate an upside continuation.
The EUR/USD price continues to move sideways in the short term. It was trading above 1.0750 at the time of writing, and it seems bullish after the ECB.
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Technically, the price action failed to confirm a new strong sell-off as the upside pressure is strong. It remains to see if the current range will be a distribution or an accumulation. Today, the price will be driven by the fundamentals. That’s why you have to be careful. Anything could happen.
The pair now tries to return higher as the Dollar Index has slipped lower again. From the technical point of view, the DXY seems undecided as well. It moves in a narrow range. Still, the ECB today and the US Inflation data tomorrow could provide a clear direction.
As you probably know, the European Central Bank is expected to keep the Main Refinancing Rate unchanged at 0.00%. The ECB Press Conference and the Monetary Policy Statement have brought sharp movements in the EUR/USD pair. The ECB has announced potential rate hikes in the next monetary policy meetings, so it remains to see how the Euro will react.
On the other hand, the US Unemployment Claims indicator could be reported at 205K in the last week versus 200K in the previous reporting period.
EUR/USD price technical analysis: Triangle
The EUR/USD pair is trapped between 1.0641 and 1.0757 levels. Now, the price action developed a triangle pattern. Escaping from the current patterns could bring great trading opportunities. Its failure to reach and retest the 1.0641 signaled strong upside pressure and exhausted sellers.
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The 1.0757 key level and the 1.0786 are seen as strong resistance levels. The pair could develop a new sell-off if it stays under these levels. Still, only a new lower low, a valid breakdown below 1.0641, could confirm a larger drop. In the short term, the price could continue to move sideways.
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