As expected, the European Central Bank left monetary policy unchanged on Thursday; the key rate remained unchanged at 0% and the ECB deposit rate for commercial banks at -0.4%. The ECB management said: “Net asset purchases will end at the end of December 2018, depending on the incoming data. We will be reinvesting for a long period after the completion of net purchases. Net asset purchases will be 15 billion euros per month until the end of December 2018, and rates will remain at current levels at least until the end of the summer of 2019”
Now the attention of market participants will be focused on the speech of the ECB President Mario Draghi, which will begin at 12:30 (GMT). If Mario Draghi makes unexpected statements, then volatility will increase dramatically. It is famous for its ability to expand its financial markets with its comments.
If Mario Draghi announces the possibility of extending the QE program after December, the euro could be under additional pressure and decline.
Meanwhile,
EUR / USD remains under pressure, trading below the key resistance level of
1.1720 (EMA200, as well as the upper limit of the downward channels on the
daily and weekly charts).
The triggering of stop-losses at resistance levels 1.1450 (ЕМА200 on the 30-minute chart) and 1.1480 (ЕМА200 on the 1-hour chart) may accelerate the corrective growth of EUR / USD, up to the resistance level of 1.1565.
However, negative dynamics prevail against the background of important fundamental factors. Recommended short positions.
Support Levels: 1.1400, 1.1385, 1.1345, 1.1285, 1.1100
Resistance Levels: 1.1428, 1.1450, 1.1480, 1.1565, 1.1700, 1.1720, 1.1790, 1.1815
Trading recommendations
Sell Stop 1.1380. Stop-Loss 1.1435. Take-Profit 1.1345, 1.1285, 1.1100
Buy Stop 1.1435. Stop-Loss 1.1380. Take-Profit 1.1450, 1.1480, 1.1565, 1.1700, 1.1720
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