On Wednesday, under the influence of the growth of the British pound and information on Italy’s readiness to limit the budget deficit to 2%, the euro grew by 50 points. The price was again above the balance line of the daily timeframe. On the four-hour chart, the price even managed to gain a foothold over the Krusenstern line. The weakness of the signal is that the formal consolidation of the price over the line occurred only today in the Asian session with low volatility. Today, the ECB announces the decision on monetary policy, at 12:30 London time, the head of the ECB Mario Draghi, will speak. Investors are waiting for new information about the regulator’s plans for next year. But if Draghi doesn’t introduce specifics, which is expected by a number of banks and agencies, the euro can easily fall.
We share this point of view due to the weak economic data of the eurozone in recent months. Draghi may still have time to resolve the issue of Brexit and to a period of more or less clear prospects for reforming the WTO.
As a result, we expect the price to go under the indicator lines on both timeframes, which, respectively, will re-open the targets 1.1190 and 1.1085.
The material has been provided by InstaForex Company – www.instaforex.com