Can the euro recover?
This article is originally referred from Orbex Technical Analysis.
The EURUSD curency pair posted strong losses on Thursday following the ECB’s decision to leave interest rates unchanged but announcing that QE would end in December 2018.
While the markets were anticipating faster pace of rate hikes, the ECB signaled that interest rates would remain at the current levels until summer of 2019.
This dovish statement pushed the sentiment weaker in the euro as a result.
Price action in the EURUSD currency pair suggests that a bottom has likely formed following Thursday’s decline and recovery from the previously established support level at 1.1539 region.
The rebound off this level , if sustained could keep the currency pair biased to the upside as it approaches the next key resistance level of 1.1730.
With the economic data relatively quiet for the week ahead, the euro currency is likely to continue posting gains.
A breakout above the resistance level of 1.1730 is required in order to confirm further upside in prices.
This would potentially open the way for the EURUSD to test the 1.20 level in the medium term.
To the downside, failure to hold the declines at the support level of 1.1539 could potentially signal further weakness in the currency pair as the EURUSD is likely to fall to 1.1500 level of support.
Original Source: Orbex Technical Analysis