The euro is not letting up and yesterday it grew by another 113 points to the target range of 1.0100/20. And once again, the market is asking the question – will there be a reversal today due to the “soft” statement of the European Central Bank after the rate hike by 0.75% and the expected growth of US GDP for the 3rd quarter by 2.4%, which will mean the end of the recession?
From a purely technical point of view, the probability of a reversal is 60%, since the price is at the upper border of the downward price channel of the weekly timeframe. The Marlin Oscillator is also not averse to turning down. Of course, the price’s exit above the target range of 1.0100/20 will allow the price to reach the target of 1.0205 – to renew the high on September 12th.
Additional information, unfortunately, is not visible on the four-hour chart. The price is quite able to reach the 1.0100/20 range, but the indicators do not suggest what will happen next. Without a doubt, today’s events (the ECB meeting and the release of the US GDP) are such important events that they can move the single currency’s quote in any direction. We are waiting for the development of events. In general, the fundamental pressure on the euro remains and the ongoing growth is still a correction.
The material has been provided by InstaForex Company – www.instaforex.com