The U.S. dollar rose Wednesday after the Federal Reserve decided to take no action. Markets are waiting to see what the European central bank is going to do later in the day. Traders are hoping that the ECB would resume its bond buying, known as Securities Market Program (SMP), to help drive down borrowing costs for Italy and Spain. Any ECB disappointment will send the EUR/USD prices back to 1.20-zone and below.
As we have mentioned yesterday in our analysis, the upside movement of the EUR/USD prices faced a strong resistance at 1.2333 and the slide of the prices found support at 1.2216 after the Fed policy meeting disappointment. The same setup remains in place and the ECB policy meeting today is expected to drive the prices outside the range 1.2206—1.2335, depends on the decision. It is important to notice that both the Stochastic and the RSI (14) signal that more room for the downside is available.
Nice trading
As we have mentioned yesterday in our analysis, the upside movement of the EUR/USD prices faced a strong resistance at 1.2333 and the slide of the prices found support at 1.2216 after the Fed policy meeting disappointment. The same setup remains in place and the ECB policy meeting today is expected to drive the prices outside the range 1.2206—1.2335, depends on the decision. It is important to notice that both the Stochastic and the RSI (14) signal that more room for the downside is available.
Nice trading
