It’s ECB day
All eyes are on the ECB to see if they taper the bond buying programme, the PEPP.
With inflation at a decade high in the Eurozone will the hawks convince the doves on the governing council that its time to move again on reining in stimulus.
The hawks were out in force last week hitting the newswires. However, amid growth concerns and rising virus fears this is certainly not a done deal.
US initial jobless claims will also be in focus.
Where next for EUR/USD?
EUR/USD failed at resistance of 1.1900 earlier this week and has been trending lower since. The price has fallen below the ascending trendline dating back to August 20 and the 50 sma. However, it has found support at the 200 sma around 1.1800.
The RSI is negative territory but pointing higher.
The bears would need to break through 1.1800 in order to head towards 1.1740 the low August 27 and 1.1660 the August low.
Any meaningful move higher needs to overcome the 50 sma at 1.1840 and the rising trendline resistance at 1.1860 in order to have another attempt on 1.1908 the monthly high.