The EURUSD failed to continue it’s bearish momentum yesterday, even the Fed statement was flat, nothing significant. The way I see it, market opinion was that the economy recovery is still in the right track. The Fed also said that it will keep the rates near zero for “an extended period” which make the Dollar less interesting than major currencies.
Technically, we have false breakdown on both major trendline support on daily chart and the range area on h4 chart as you can see in my daily and h4 charts below, which potentially lead to further bullish momentum. Like I said yesterday, false breakdown from the range area on h4 chart lead to further bullish momentum with 1.4950 – 1.5060 area as potential bullish target. I prefer a bullish scenario at this phase and focus now is on ECB rate decision and press conference today. With no significant surprise in economic data, it’s more likely that the ECB statement will also flat but investors, once again, might see that global recovery is also still in the right track. Unless we have significant negative tone from ECB, the Dollar should keep under pressure. Immediate support at 1.4800. Break below that area should lead us into no trading zone but I still prefer bullish scenario. I think it’s better to do nothing for now until the ECB press conference. Patient, my dear fellow traders, is a virtue.