Focus on ECB decision and press conference

U.S. dollar held steady on Wednesday after fundamental news, which was released on Tuesday better than the forecast. Dow Jones fell down for 424 points because of the upset earning data and worries about rising interest rate. Asian major stock markets edged lower on Wednesday. EUR/USD fell early in the morning but euro may try to hold above 1.2150, waiting for ECB interest rate decision at 18.45 p.m. and press conference at 19.30 p.m. As for the interest rate – we don’t expect any surprises - ECB has to leave the interest rate unchanged at the level of 0.00% but investors may focus on economic sentiment and QE. Moreover, ECB also may hold marginal lending at 0.25%.
10-year bond yield rose at 3.001% on Wednesday but it will not support greenback for long term. However, U.S. economic data may support dollar hold steady: core durable goods orders and durable goods orders at 19.30 p.m. which are predicted lower than in February. I think these indices will be better than the forecast and it will be positive for dollar. If U.S. economic data is better than expected, investor may worry that Fed may raise interest rate earlier. I also suggest seeing initial jobless claim at 19.30 p.m.
Bitcoin cash fell after strong rising during 6 last days and it may build the evening star pattern so I suggest support line is at 1,100 USD. Bitcoin price tries to hold above 9,000USD, taking breath before retest of the resistance line at 10,000 USD again.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

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