EURUSD – Fights for 1.1640, Awaits ECB Meeting

The single currency has failed multiple times to break above the strong resistance around the 1.1650 zone, where previous highs and lows converged. As long as the EURUSD pair trades below, the outlook looks neutral.

On the plus side for bulls, the Euro has managed to climb above the short-term bearish trend line and therefore the immediate trend is at least neutral, and not bearish.

However, expectations for today’s ECB are dovish, which could send the Euro lower in the afternoon. Bulls need to defend the broken trend line, which is around the 1.16 level. If this zone cracks, the Euro will most likely drop to the key swing support of 1.1550.

Should this support (1.1550) fall as well, the bearish trend would be renewed and it looks like the pair has formed a descending triangle pattern, which is a bearish pattern, suggesting the Euro could drop around 2 figures if this pattern is confirmed.

Everything will be decided after today’s ECB decision and volatility is expected to be elevated on the EURUSD pair.

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