Breaking forecast on 07/25/2019 for EUR/USD and trading recommendation

The most important event of the day is the meeting of the Board of the European Central Bank on monetary policy. According to the results of which, almost certainly, interest rates will remain unchanged. However, rumors have been actively circulating over the past few days saying that the office of Mario Draghi may reduce the deposit rate, which has already had an effect on the value of the common European currency. In this regard, almost certainly, the information that the European Central Bank leaves all rates unchanged will be perceived as incredibly positive, and will allow the single European currency to recover some of its losses against the dollar.


A pair of EUR / USD is showing active downward interest since the beginning of the week. It disappointedly failed in the area of the range of 1.1100, where it formed daily stagnation of 1.1130 / 1.1155. What we have? - a certain accumulation on the eve of an important event, the ECB meeting, which puts pressure on the market quotation. In turn, traders consider several possible options at once. Let's consider them: First, the existing overheating of short positions is clearly reflected in the chart and the current stagnation is confirmed by us, thus referring to the fact that the ECB may have nothing to do and leave everything as it is. The market will exhale and the current platform, in the form of stagnation, will serve as an excellent platform for long positions and a move towards 1.1180; The second option, considering the opposite picture, the ECB lowers the rate on deposits, and already on the eve of the statement, we see a clear decline to the level of 1.1100. But with the flow of emotions, we can possibly enter 1.1130 - 1.1090 quickly.

From the point of view of a comprehensive indicator analysis, we see that the downward interest that has been drawn up is pressing on the parameters of indicators across all major time intervals, signaling active sales. It is worth considering that there are minute charts and indicators in smaller time sections due to stagnation, and at the time of the ECB meeting, the background information can reach intraday time intervals.


The material has been provided by InstaForex Company -