ECB Preview: How Will the Euro (EUR) React?

[MongiIG]

 

ECB, EUR PRICE ANALYSIS & NEWS

• ECB to (finally) Raise Rates for the First Time Since 2011
• 25 or 50bps a Near Coin Toss, Anti-Fragmentation Tool the Key Focus

*LIVE ECB COVERAGE: We will be providing live coverage of the ECB Decision from 13:00BST*.

 

come under pressure initially.

How to Trade Forex News: An Introduction

ECB SCENARIOS

Courtesy of ING, here is a useful ECB crib sheet listing the potential scenarios for today’s meeting.

 

Jul 21, 2022 | DailyFX
Justin McQueen, Strategist

[MongiIG]

Euro Braces for Impact as the ECB Starts Rate Hike Cycle, Draghi Ponders Fate

Jul 21, 2022 | DailyFX
Ilya Spivak, Head Strategist, APAC

EURO, ECB, DRAGHI, NORD STREAM 1, RUSSIA – TALKING POINTS:

• Euro marks shallow gains as Russia reboots Nord Stream 1 gas pipeline
• Italian PM Draghi may resign after mass abstentions at confidence vote
• Hesitant ECB tone may drive Euro lower as the rate hike cycle starts

 

EUR/USD TECHNICAL ANALYSIS

The Euro remains locked in a downtrend against the US Dollar. Prices managed a pop in recent sessions after testing the coveted parity level but sellers may be preparing to recapture the initiative. The appearance of a bearish Dark Cloud Cover candlestick pattern hints a top may be forming. The swing low at 0.9952 marks initial support. Alternatively, breaking above the high at 1.0273 appears to set the stage for an underside retest of the broken range floor at 1.0406.

EUR/USD daily chart created using TradingView

[MongiIG]

2 hours ago, MongiIG said:

Euro Braces for Impact as the ECB Starts Rate Hike Cycle