EURUSD – choppy post-ECB trading keeps the price within a 50-pips range and lacks clearer near term direction signal.
Rate cut by 25 basis points and dovish shift by the central bank which signals that the door for further easing remains open, due to weak growth outlook, fueled by negative economic data and political instability (primarily in Germany and France) keep near-term risk at the downside.
On the other hand, technical picture on daily chart is mixed (positive momentum continues to strengthen and stochastic is about to penetrate oversold territory, countered by MA’s in full bearish setup) suggests that the price action may remain in current range for some more time.
Markets shift focus to next week’s top economic events (Fed rate decision and EU inflation report) which may generate stronger signals.
The price found solid support at 1.0475 (broken Fibo 23.6% of 1.0936/1.0332 bear-leg) which so has far contained several attacks and still marks the base for potential fresh attempts higher, but increased downside risk to be expected in case loss of this support.
Res: 1.0528; 1.0563; 1.0597; 1.0630
Sup: 1.0475; 1.0432; 1.0400; 1.0332
 keep near-term risk at the downside.){kind=link}