Technical Analysis: EURUSD eyes monthly resistance ahead of ECB

EURUSD holds onto the previous day’s bounce off three-month low, though with a lesser pace, towards a downward sloping resistance line from June 25 ahead of Thursday’s European Central bank (ECB) monetary policy. Although the policymakers are expected to stand pat, comments over the economic outlook will be the key to break the immediate hurdle surrounding 1.1810. While the sustained breakout could recall the 1.1880, any further upside will be less convincing until crossing 1.1920 resistance confluence including 61.8% Fibonacci retracement level of March-May upside and 200-day EMA.

Meanwhile, 1.1770 and the latest low of 1.1750 could entertain the EURUSD bears during the fresh downside. Following that, the yearly bottom surrounding 1.1700 will be crucial. Should the pair sellers remain dominant past the 1.1700 threshold, November 2020 lows near the 1.1600 round figure will be in focus. Overall, EURUSD remains in a bearish trajectory but the ECB needs to speak dovish for the trend to last.

Join us on FB and Twitter to stay updated on the latest market events.