EURUSD Positive Momentum at two Week Highs
EURUSD adding 0.22% at 1.1087, after yesterday the ECB cut the Deposit Rates by 10 bp to -0.50% and unveiled another round of debt purchases. EURUSD tested yesterday the yearly low at 1.0925 after the ECB announcement but managed to rebound sharply breaking above 1.10 and made the daily high at 1.1086. Bears failed to initiate a leg lower and bulls took control for the short term, and continue today slightly higher at 1.1093.
EURUSD trapped in the descending channel since June. On the upside, immediate resistance stands at 1.1095 today’s high, a break above can lead prices up to 1.1109 the upper bound of the descending channel, and then at 1.1129 the 50-day moving average. On the downside important support now stands at 1.1055 daily low, a break below will encourage more bears to join the action and drive the price down to 1.10 before an attempt to 1.0925 YTD lows.