On the other side of the Atlantic, ECB is to announce its interest rate decision today at 11:45 (GMT) and is widely expected (probability of 97.28% according to EUR OIS to remain on hold at 0.00%. Market focus could shift to the accompanying statement which may have a more hawkish tone, as the inflation rate has accelerated. It could also be the case that the bank could announce or imply that it will gradually end or taper, its massive QE program. Should that be the case we could see the common currency strengthening as such a scenario may not have been totally priced in by the market.
EUR/USD rose yesterday approaching the 1.1820 resistance line, within the boundaries of yesterday’s mentioned sideways movement. We could see the pair continue to have some bullish tendencies as the ECB interest rate decision and the following press conference could provide some support for the common currency. Should the pair find fresh buying orders along its path we could see it breaking the 1.1820 resistance line and aim for the 1.1925 resistance hurdle. Should the pair come under selling interest, we could see it clearly breaking the lower boundary of its sideways movement, also breaking the 1.1725 support line and aim for the 1.1640 support barrier.