The EUR/USD pair has bounced from around the 38.2% retracement of its latest bullish run, measured between 1.1663 and 1.1908. The near-term picture indicates that the risk is skewed to the downside, as, in the 4-hour chart, the 20 SMA gains bearish strength above the current level. Additionally, technical indicators are barely bouncing from daily lows, still holding well into negative territory. The pair could shrug off its negative stance on a recovery beyond 1.1865, the immediate resistance level. As the European Central Bank announcement on monetary policy looms, investors may move away from the pair. The ECB is having a monetary policy meeting, and the outcome will be unveiled on Thursday, September 9. The focus will be on whether policymakers are ready or not to trim its ultra-loose monetary policy and upward revisions to growth and inflation forecasts.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

As the European Central Bank announcement on monetary policy looms, investors may move away from the pair. The ECB is having a monetary policy meeting, and the outcome will be unveiled on Thursday, September 9. The focus will be on whether policymakers are ready or not to trim its ultra-loose monetary policy and upward revisions to growth and inflation forecasts. The EUR/USD pair is bouncing modestly from a fresh weekly low of 1.1811, as demand for the greenback paused. Nevertheless, a dismal market’s mood maintains the dollar up against most of its major rivals. The ongoing bounce is the result of European indexes trimming substantial losses from earlier in the day, although they are still in the red, weighing on US futures. As long as the pair stays above exponential moving average 50 in daily and 1.1780 price action, we will keep our positions intact towards hawkish projections while a strong impulsive breakout below would change the odds by targeting 1.17042. 

EURUSD

Sep 08 2021