EUR/USD 4 Hour: Bullish Sentiment During ECB announcement
Forex Fundamental news: Protester interrupts European Central Bank’s head, Mario Draghi’s speech by shouting, “end ECB dictatorship.”
Draghi reiterates that the euro exchange rate is not a policy target for the ECB.
Suggested positioning: No short-term positions due to volatility
Technical reasons: The pair is facing a new bullish sentiment towards the 23% Fibonacci level while remaining below the Ichimoku cloud. Given the fact that the pair has recently completed a double top chart pattern, if the pair confirms a break above this level we could see further upside.
Alternative Scenario: If the pair is unable to confirm a break above 23% Fibonacci level, we could see further drops back to support levels at 1.0550 and 1.0470.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.0550 | 1.0655 | 1.0720 |
| 1.0470 | 1.0780 |
