EURUSD on Bear Run Ahead of ECB Policy Meet For the Day

EURUSD on Wednesday took a steep downtrend movement erasing gains from previous sessions as greenback continued to gain strength from positive bond yields and US CB consumer confidence data released on Tuesday. However the pair has started moving uptrend during early hours of trading session on Thursday morning ahead of ECB policy meet to be held later today. So far EURUSD seems to be in favor of US dollar as momentum gained from high yields in 10-year US treasury bills has got USD on bull momentum in a broader spectrum across FX market.

EURUSD Moves Below 1.22

The public opinion so far seems divided as Asian market hours has given bull momentum to pair despite popular belief among analysts that the European currency is under potential extra pressure as the European Central Bank is expected to deliver a somewhat dovish tone at its policy meet today. At the March meeting, policymakers took a small step, dropping a pledge to increase stimulus if needed. Will we see additional ‘baby’ steps at the April meeting? The ECB has said it intends to continue bond purchases until at least September, to keep interest rates at current levels until “well past” the end of the program. Traders shouldn’t expect any dramatic moves at the policy meeting, as the bank will likely continue to preach patience and prudence.

The pair struggles to hold its ground as the morning session saw the pair take a range bound momentum, with recent price action highlighting the risk for a further decline. Euro is painting a pretty grim picture, and hopes of a recovery are beginning to dwindle as the pair prepares to break into new lows for 2018. While ECB outcome might break or make the pair, a look at technical chat shows major probability for EUR to continue on a bearish path. Expected support and resistance levels for the instrument are expected at 1.2160, 1.2130 & 1.2100 and 1.2225, 1.2260, 1.2295 respectively.