News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • 🇳🇱 Consumer Confidence (SEP) Actual: -5 Previous: -6
  • A rough start to the week with the cryptocurrency market a sea of red with losses on either side of -10% a common sight.Get your market update from @nickcawley1 here:
  • RT @FxWestwater: Gold, Copper Forecast: XAU Eyes FOMC, Evergrande News Sends Copper Flying Link:…
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -6
  • PBoC liquidity injection + reports that Evergrande will make its next onshore bond payment ($35.88-million on 23 Sept) is bolstering risk appetite here. Yet, there is still no word on the $83.53-million offshore bond payment also due Thursday. Over to you now, Jpow & Co.
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Bank of Japan: - Outlook highly uncertain amid Covid - Asset purchase outline unchanged - Cuts assessment of production - exports, production impacted by supply side constraints - BBG
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Previous: -0.1%
  • What is your forex trading style? Take the quiz and find out:
Euro Setup: EUR/USD, EUR/GBP Ahead of ECB

Euro Setup: EUR/USD, EUR/GBP Ahead of ECB

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • All eyes on ECB as ultra-dovish policy continuity in question
  • Key levels for EUR/USD and EUR/GBP

The ECB will conclude its monetary policy meeting today and there is a bit of mixed emotions in the market this morning as recent comments from policy members have sparked some belief that the bank may be more hawkish than originally expected.

The bank has kept an ultra-loose monetary policy since the pandemic began and has been promising a longer period of accommodation once the economic recovery started to stabilize, but recent inflationary pressures may cause the bank to act sooner rather than later.

The positioning in markets with regards to the ECB is ultra-dovish, as it is one of the banks least expected to change its policy anytime soon. Even the comments from most policy members were keeping in line with the dovish rhetoric up until the July meeting, but recent comments from the likes of Weidmann, Holzmann and Lane suggest that the economic environment is showing signs of improvement to start considering reducing the special pandemic financing programs.

Euro Setup: EUR/USD, EUR/GBP Ahead of ECB

Chart prepared by DailyFX Strategist Justin McQueen

The take from the comments above are mostly skewed towards preparation to start reducing asset purchases without putting too much emphasis on it, possibly being downplayed by Lagarde at the press conference. If so, markets are likely to take note on the slight tilt from the bank and the Euro could see some tailwind support.

EUR/USD: the Euro has been outperforming the US Dollar since the end of August but continues to be rejected when attempting to break above 1.19. The setup remains pretty bullish in the short-term with the 50-day moving average converging to offer support at the 1.18 mark, and the RSI tilting higher just above the mid-way 50 mark. A hawkish ECB could see the pair regain the lost ground of the previous sessions but the 1.19 still looks like a tough area to crack, meaning we may see some sideways consolidation before a fresh leg higher is achieved.

EUR/USD Daily chart

Euro Setup: EUR/USD, EUR/GBP Ahead of ECB

EUR/GBP: the recent weakness in the Pound has been helping the pair push higher but any moves above 0.86 have been quickly reverse, which shows that bulls are still lacking control. The move so far this morning is pretty bearish but EUR/GBP is likely the pair to be most impacted by the ECB meeting, especially if the bank comes off as more hawkish than expected with talks about scaling back bond purchases. So far 0.8550 looks like a good area for short-term support as the 50-day SMA is converging, whilst buyers will need to pick up some strong momentum to break above the current resistance at 0.8603/14.

EUR/GBP Daily Chart

Euro Setup: EUR/USD, EUR/GBP Ahead of ECB

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.