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EUR/USD Today Technical Report 21/04/2016

EUR/USD tumbled on Wednesday, falling back below the 1.1335 (R1) hurdle and hitting support at 1.1290 (S1). In my opinion, the move back below 1.1335 (R1) has shifted the short-term bias back to the downside and as a result, I would expect a decisive move below 1.1290 (S1) to open the way for the next support zone of 1.1235 (S2), defined by the low of the 14th of April. Today, the ECB gathers to decide on monetary policy. While the Bank is expected to keep its policy unchanged, President Mario Draghi is likely to strike a dovish speech at the press conference following the decision. This could encourage EUR/USD bears to push the rate below the 1.1290 (S1) barrier. Our short-term oscillators detect negative momentum and support the notion as well. The RSI fell below its 50 line, while the MACD has topped slightly above zero, fell below its trigger line, and has just turned negative. As for the bigger picture, EUR/USD is still trading within a wide range between the 1.0800 key obstacle and the psychological area of 1.1500. As a result, I would consider the longer-term path to be sideways.



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