EUR/USD – ECB’s Near Term Plan – Technical Analysis

This would potentially diverge EURO and USD even further considering the FED is already planning its rate hikes and tapering.

Technical Analysis

Whilst we are on a downtrend on EURO, we should expect some further depreciation as this month unfolds into the new year and potentially Q1 2022.

Currently, EURO is correcting inside this triangle pattern and failed to break above 1.13. Although it is currently inside this triangle this does not mean it may continue to correct a bit deeper between 50% – 61.8% Fibonacci Retracement of the previous impulse wave. Either way, unless it breaks 1.169 resistance, I don’t see any hopes of EURUSD climbing. The screenshot below will show that as a potential example.

So, it is quite clear that both technical analysis-based pictures are illustrating a further continuation alongside the supported fundamentals. There will be another update once we get a clearer picture of the plan this part decides to move forward with.