Thursday, 20 October 2016

EUR/USD ahead of ECB meeting

In the early trading hours today the US dollar was performing slightly stronger against the major rivals, supported by Fed's Beige Book release that indicated clear and definite development for the US economy. In anticipation of the key event today, ECB meeting and Mario Draghi's speech, the EUR/USD is consolidating within a tight range.
It is expected that ECB will keep unchanged its key benchmark interest rates and bond purchase program. Anyway today’s meeting and the following presser will bring increased volatility on markets.
The pair is currently hovering around 1.0950 level, which is an immediate support. If bears strengthen their force, the pair will be sent lower towards next support at 1.0920. Looking to upwards, if the pair struggles to push higher above the current support mark, will face the first resistance located at 1.1065.