5 Mar 2015
EUR could bottom out if ECB upgrades growth forecasts – FXStreet
FXStreet (Barcelona) - With the ECB meeting today, Omkar Godbole, FXStreet Editor and Analyst, views that an upgrade in the growth forecasts from Draghi could lead EUR/USD to bottom out and bounce back above 1.10 levels.
Key Quotes
“The bank is expected to unveil the details of its QE program today, and begin its EUR 1 trillion program from the current month. Given the divergent policy expectations from the Fed and the ECB, the reaction in the EUR has been exaggerated. However, the markets have largely ignored the recent upbeat economic data out the Eurozone. The risk of Grexit is also off the table for sometime now. Thus, the EUR could see a fresh buying demand, especially if the ECB upgrades its growth forecasts later today.”
“However, given the oversold nature of the RSI on the hourly and 4-hour charts, the pair is likely to see a minor recovery to 1.1093 levels.”
“We are likely to see an intraday dip below 1.10 during the ECB President Mario Draghi’s press conference. However, the pair could be seen bouncing back above 1.10 levels in case ECB upgrades growth forecasts.”
Key Quotes
“The bank is expected to unveil the details of its QE program today, and begin its EUR 1 trillion program from the current month. Given the divergent policy expectations from the Fed and the ECB, the reaction in the EUR has been exaggerated. However, the markets have largely ignored the recent upbeat economic data out the Eurozone. The risk of Grexit is also off the table for sometime now. Thus, the EUR could see a fresh buying demand, especially if the ECB upgrades its growth forecasts later today.”
“However, given the oversold nature of the RSI on the hourly and 4-hour charts, the pair is likely to see a minor recovery to 1.1093 levels.”
“We are likely to see an intraday dip below 1.10 during the ECB President Mario Draghi’s press conference. However, the pair could be seen bouncing back above 1.10 levels in case ECB upgrades growth forecasts.”