EURUSD holds in tight range ahead of ECB; outlook remains bullish but Draghi’s press conference closely watched for fresh signals
The Euro is holding within tight range around 1.24 handle in early Thursday’s trading, awaiting the verdict from the ECB later today.
Near-term structure remains firm as 1.24 holds and despite yesterday’s Doji candle, as the pair entered narrow range directionless mode ahead of two very important events, European central bank’s rate decision, due later today and US Non-Farm Payrolls on Friday.
Recent break above pivotal 30SMA barrier at 1.2355, generated strong bullish signal which received confirmation on Wednesday’s close above 1.2400. Bullish stance is expected to remain firm while the price holds above 30SMA and would look for test of targets at 1.2460 (Fibo 76.4% of 1.2555/1.2154 downleg, which was approached on Wednesday’s spike to 1.2445 high) and 1.2493 (20-d upper Bollinger band).
Bullish daily techs remain supportive for further upside and favor dip-buying scenario while 30SMA holds.
ECB is in focus today and widely expected to keep rates unchanged, but traders will be looking for the comments from central bank’s President Mario Draghi and expecting stronger hints about the ECB’s steps in the near future.
Draghi faces tough job to compose central bank’s statement in light of two key components: weak inflation and strong economic growth of the Euro bloc.
Res: 1.2415; 1.2415; 1.2460; 1.2493
Sup: 1.2384; 1.2354; 1.2339; 1.2317