The common European currency surged against the Greenback during the first part of Wednesday. The upper channel line of the senior channel failed to limit the pair, thus allowing further appreciation towards the weekly R3.
This upward momentum which was mainly driven by Mnuchin’s comments should allay in the nearest hours, thus allowing bears to dominate this session.
However, the ECB is to release its Minimum Bid Rate and have a conference at 1245GMT and 1330GMT, respectively. In case of any positive surprise, the rate could briefly trade above the 1.25 mark. Investors are waiting for some information on whether and/or how the Bank is to curb the Euro’s strong appreciation which has pushed the rate up to its highest level sine late 2014.
Downside target could be 1.23.
