EUR/USD: pending ECB decision 11 March 2021, 09:08

EUR/USD: pending ECB decision

11 March 2021, 09:08

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.1955
Take Profit	1.2070
Stop Loss	1.1890
Key Levels	1.1800, 1.1834, 1.1900, 1.1951, 1.2000, 1.2022, 1.2070

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.1895
Take Profit	1.1800
Stop Loss	1.1951
Key Levels	1.1800, 1.1834, 1.1900, 1.1951, 1.2000, 1.2022, 1.2070

Current trend

EUR is trading ambiguously against USD during today's Asian session, consolidating near 1.1930 and small local highs since March 5, which were achieved due to the corrective growth of the instrument since Tuesday.

Not the most confident macroeconomic statistics from the US put pressure on USD. In addition, investors are reacting to the downward correction in US bond yields, which, however, are holding close to annual highs. The Consumer Price Index Excluding Food & Energy in the US in February rose by only 0.1% MoM after the zero dynamics in January. Experts expected a growth of 0.2% MoM. In annual terms, the indicator corrected downward from +1.4% YoY to +1.3% YoY.

Today, European investors are focused on the decision of the European Central Bank (ECB) on interest and deposit rates, as well as a press conference of the European regulator.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is slightly narrowing, reflecting the ambiguous dynamics of trading in the short term. MACD has reversed to growth forming a new buy signal (located above the signal line). Stochastic shows a similar dynamics, quickly retreating from its lows, which recently signaled a strongly oversold EUR in the ultra-short term.

Resistance levels: 1.1951, 1.2000, 1.2022, 1.2070.

Support levels: 1.1900, 1.1834, 1.1800.

Trading tips

To open long positions, one can rely on the breakout of 1.1951. Take-profit – 1.2070. Stop-loss – 1.1890. Implementation time: 2-3 days.

A rebound from 1.1951 as from resistance followed by a breakdown of 1.1900 may become a signal for new sales with the target at 1.1800. Stop-loss – 1.1951.