EUR/USD Retail FX Cling to Net-Short Positions Ahead of ECB Meeting

EUR/USD Retail FX Cling to Net-Short Positions Ahead of ECB Meeting

20 April 2016, 19:20
Mohammad Soubra
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EUR/USD Retail FX Cling to Net-Short Positions Ahead of ECB Meeting


 EUR/USD

 

  • EUR/USD may largely consolidate going into the European Central Bank (ECB) interest rate decision as market participants gauge the outlook for monetary policy; despite speculation for more easing, the single-currency may largely preserve the gains from earlier this year as the euro-area returns to its historic current account surplus following the ‘Great Recession.’
  • Even though ECB President Mario Draghi keeps the door open to further support the monetary union, a batch of dovish rhetoric may not be enough to weaken the single-currency after the central bank head unintentionally put a floor on interest rates following the March 10 meeting.
  • Will continue to watch the topside targets for EUR/USD as the pair appears to be in a long-term bottoming process, with a break/close above 1.1420 (23.6% retracement) to 1.1460 (78.6% retracement) raising the risk for a run at 1.1713 (August high).


 

 

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https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2016/04/20/EURUSD-Retail-FX-Cling-to-Net-Short-Positions-Ahead-of-ECB-Meeting.html 

 

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