Technical Analysis: EURUSD recovery looks to ECB with bumpy road ahead
Despite breaking the two-week-old falling trend line the previous day, EURUSD wavers in a choppy range above 1.1900 as the pair traders await ECB's decision. Also important for the day is US President Joe Biden’s speech to praise policymakers after his $1.9 covid stimulus package crossed the Senate before a few hours. While neither ECB nor Biden seems to offer any challenges to the EURUSD recovery, a three-week-long resistance line near 1.1960, previous support, guards the quote’s corrective pullback. Even if the EURUSD bulls manage to cross the 1.1960 hurdle, the 1.2000 psychological magnet and 200-bar SMA level of 1.2070 should be watched carefully as resistances.
Meanwhile, the downside break of the recently breached resistance line, now support, around 1.1900, will recall the EURUSD sellers targeting 200-day SMA level on the daily chart near 1.1820. It should, however, be noted that the fears of reflation, if mentioned, could exert additional downside pressure on the pair towards the November 2020 low near 1.1600.