forex EURUSD Forecast: Monthly Opening Range on Radar Ahead of ECB Meeting

[Anzo Lim 0]

EURUSD appears to be stuck in a narrow range as the ECB prepares for its quarterly meeting, and the central bank may unveil new measures to insulate the Euro area as the Governing Council struggles to achieve its one and only mandate for price stability.

 

-The broader outlook for EURUSD is becoming more bearish as the exchange rate clears the May-low (1.1107) following the Federal Reserve rate cut in July, with the 1.1100 (78.6% expansion) handle no longer offering support.

-Will keep a close eye on the Relative Strength Index (RSI) as the oscillator continues to track the downward trend from June, but a break of trendline resistance may accompany a larger rebound in the exchange rate as the bearish momentum abates.

-Nevertheless, the failed attempt to push above the 1.1100 (78.6% expansion) handle may continue to generate range-bound conditions, with a move below 1.1040 (61.8% expansion) bringing the Fibonacci overlap around 1.0950 (100% expansion) to 1.0980 (78.6% retracement) back on the radar.

 

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