Fundamental EUR/USD – ‘What ever it takes’ message may continue
Mr Mario Draghi may play the same drum once again today so that that the market gets the sound which it received back in August. There is no doubt that the biggest economy of the Europe- Germany is showing a strong growth rate with a strong possibility of the spill over effects, but the peripheral countries are still not strong enough still to make them stand on their own feet yet, which leaves Draghi to keep believing the market that the ECB will certainly still stand by their phrase of ‘Whatever it takes’. I would say that the main challenge for the ECB is the forward guidance because we do certainly have some growth in the ECB but it’s the ECB pledge to keep the interest rate down for the extended period of time which could be challenging.
Technical Analysis -EUR/USD- Unless the downward trend line is broken, the bias is to the downside
The EUR/USD pair is trading below the downward trend line on a 60 minute time frame. If the price breaks this downward trend the bias could easily be more towards the upside however, if it fails to break this trend line then we could easily see the price moving toward its minor support level mentioned below. The pair is also trading above the 50 day (shown in green) but below the 100 day (shown in yellow) moving averages which confirms that the bears are still in control.
The RSI is also trading inline with the price action which confirms that the bias is to the downside.