EUR/USD managed to make a short term recovery yesterday with a 1.1778 high after dropping to 1.1681 low, and closed at 1.1766 at 10-EMA after receiving a positive injection boosted by dovish FOMC meeting yesterday resulted on U.S Dollar collapse to 93.36 low after a peek to 94.04 high. Currently the pair is trading 1.1760 intraday.
Looking at daily candle pattern for EUR/USD, we can notice that the pair is on constant correction phases with lower highs but dips are strong fighting support 1.1680 which to be considered the trend reversal center in case EUR/USD closed below it today or tomorrow.
Fundamentally, EUR/USD awaits EU Inflation report which will be released shortly. Recent CPI booked 1.3% with expectations for same result or in case a higher, still below 2%. The focus will be on ECB meeting today with the statement they will release regarding economic outlook. In case the contend includes a cautious watch, current market situations sees no reason for rates tapering and most important the QE program. In case of maintaining QE at current without reduction, then this a disappointment for EUR bulls. Any reduction or promise for an interference for QE in next meeting then EURO will rally with fury and over-topping for recent highs.
On the other hand, the buck will receive afterwards multi economic data but focus will on Unemployment claims today at 12:30 PM GMT, but employment sector is out performing recently, so expectations of a positive outcome will be high.
Technical Overview For EUR/USD...