Technical Analysis: EURUSD looks set to refresh two-month top, ECB in focus
Following the Bank of Canada’s (BOC) bond-buying taper being the first among developed countries, even at times when the West rejects monetary policy adjustments, EURUSD traders turn optimistic ahead of Thursday’s European Central Bank (ECB) meeting. Although the bloc’s central bank is neither likely to alter rates nor bond purchase schemes, it may signal tapering announcement during June and can win hearts. Additionally, the pair’s ability to stay positive beyond a downward sloping resistance line, now support, from January 07 joins bullish MACD signals to keep the EURUSD buyers hopeful. The latest rise stays directed towards the three-month-old resistance line close to 1.2130. During the run-up, the quote can cross March’s top near 1.2115 and refresh the multi-day peak. In a case where EURUSD remains strong beyond 1.2130, the return of February top near 1.2245 can’t be ruled out.
Meanwhile, a downside break below the resistance-turned-support line near 1.2010 needs to conquer the 1.2000 psychological magnet and late March highs near 1.1990 to recall the sellers. Also, February’s low surrounding 1.1950 and 200-day SMA level of 1.1915 are some additional supports that the pair could take during the fresh declines.