The Eur/Usd has been trading in a range bound market ahead of the European Central Bank Press Conference scheduled later today, where President of the ECB Mario Drahgi, will be hinting on the future of the Euro currency. This will surely provide high volatility in the market and also trading opportunity. The ECB is expected to keep monetary policy unchanged after it cut rates to record lows in June in a bid to avert the threat of deflation in the region.
The latest data showed that the annual rate of inflation in the euro area slowed to 0.4% in July from 0.5% in June, adding to pressure on the central bank to do more. The euro fell to nine month lows against the dollar on Wednesday after data showed that Italy unexpectedly slid back into a recession in the second quarter and another report showing that German factory orders fell unexpectedly in June.
Investors are awaiting the ECB’s rate statement later Thursday, as concerns over the divergence in monetary policy between it and its major peers continued to weigh on the single currency.
Buy if we get a clear break of 1.34422 resistance with high volume (V.S.A)
Sell if we get a clear break of 1.33308 supports with high volume (V.S.A)