The US dollar continued to gain support in Wednesday’s trading yesterday by market risky sentiment following growing concerns over the contagion of the Delta variant’s Covid-19 which gives an advantage to the safe-haven currency.
The focus today (Thursday) will be on the European central bank meeting at 7.45 pm local time which will drive the movement of the Euro currency.
The European Central Bank (ECB) is expected to continue to keep rates unchanged and investors will be waiting for indications on whether the bond -buying program will be reduced or maintained.
The price movement on the chart of the EUR/USD currency pair has exhibited a decline for the third day in a row with yesterday’s lows almost touching the 1.18000 level.
The downtrend will continue after bearish price signals moving below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame in addition to the strengthening of the US dollar which added pressure on the Euro ahead of the ECB meeting.
The level of 1.18000 in the RBS (resistance become support) zone will be tested with the expectation that the price will fall lower below that zone.
If the ECB continues to maintain a loose policy, the Euro is likely to continue to depreciate and push prices to fall lower to previous focus levels around 1.17500 as well as 1.17000.
On the other hand, if the price manages to show a rebound with the 1.18000 zone being the latest price support, the price increase is seen to re -test the 1.19000 resistance zone reached at the end of last week.
A higher rise above the resistance will mark the latest 10 -week high with the latest bullish target towards the 1.20000 focus level.
