Today’s ECB meeting at 12:45 GMT will be the last of the year, but also, it will be one of the most important, ahead of next week’s Federal Reserve meeting. The central bank has been keeping unchanged the interest rates but at the same time, according to Mario Draghi’s words, it keeps the doors opened to further stimulus and that could get materialized in today’s meeting. Some analysts are expecting that the ECB will extend it’s QE program.
Our technical analysis for EUR/USD at H4 chart is showing a recovery ongoing and it’s heading towards the 200 SMA. If the meeting comes in with hawkish words for Eurozone’s economy, the pair may attempt a breakout above the resistance level of 1.0859, while some negative words or drastic measures could weigh on the Euro and it could consolidate below the 1.0600 psychological level.
Origin: FX BAZOOKA