Thursday, October 22, 2015

EUR/USD hovering around 1.1350, in a 50-pip range

FXStreet (Córdoba) - EUR/USD remains steady on a quiet session in the forex market. The pair approached daily lows and fell to 1.1335 but only to rebound. It rose to 1.1365 and now is hovering around 1.1350, marginally above the level it closed yesterday.

EUR/USD waiting for ECB

During all day, price moved within a range of less than 50 pips. It peaked during the European session at 1.1376 and then bottomed at 1.1333. It continues to trade sideways in the short term as traders awaits the European Central Bank meeting that will be held tomorrow.

“From a technical point of view, the EUR/USD pair retains a bullish tone in the daily chart, despite the ongoing absence of directional strength as the price has remained firmly above a bullish 20 SMA ever since the month started”, said Valeria Bednarik, Chief Analyst at FXStreet.

No change in rates is expected at the ECB. Some analysts speculate about a modification in the purchase program. If the ECB makes no change, traders would look into Draghi’s words for any clues about the future path of the QE program. Volatility could rise in the EUR/USD pair, but is not clear if it would be enough to push the pair above 1.1400 or below 1.1300.
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