United Overseas Bank made a fundamental forecast concerning ECB’s meeting later today:
- "With daily MACD heading lower and with internal momentum showing signs of weakness, the bias appears to be greater on the downside. However, 1.1300 is a major support and this level has to break before a sustained down-move in EUR can be expected in the coming days."
- "That said, the next support is not that far away at 1.1240 and being a cluster of supports, this is clearly a major level. The next significant support below 1.1240 is closer to 1.1085."
- "Overall, a move to 1.1415/20 resistance will not be surprising but at this stage, 1.1460 appears to be strong enough to contain any EUR strength in the next couple of days."
As we see from the image above - the nearest support level is 1.1305 located on the border between the primary bearish and the primary bullish on the chart, and if this level is going to be broken so we may see the bearish reversal to be started by the daily price for example.
