Strategy Video: Can the ECB Drive EURUSD Below 1.2200 Today
• The last ECB meeting of the year is scheduled for today (12:45 GMT)
• A full-press on stimulus with a sizable QE upgrade could extend the tumble, but is it likely?
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Some of the major Euro crosses - including EURUSD and EURGBP - have come up to major, multi-year support levels. That is good timing from the technical side as we are heading into an event risk that can drive the next leg of the bear trend depending on its outcome: the ECB rate decision. However, between the scale of the technical level, the moderation expected in financial markets this time of year and adjustment already made for monetary policy easing in the Eurozone; it is not easy to facilitate the next move lower. In today's Strategy Video, we discuss the scenarios for this event along with the expectations and cues to keep in mind for setting reasonable trades.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.