Euro Price Analysis:
- Tomorrow’s economic calendar[1] brings a rate decision from the ECB, set to take place at 7:45 AM ET with the accompanying press conference kicking off at 8:30 AM ET.
- While little is expected around tomorrow’s ECB rate decision, the EU Summit may be more eventful or contentious for financial markets[2].
- Ahead of the drivers, EUR/USD[3] has pushed up to a fresh four-month high, testing a key zone of resistance along the way. Thus far, buyers have been held at bay by this area on the chart, setting up an interesting backdrop in the pair and the Euro[4] for the coming days.
EUR/USD Tests Key Resistance Ahead of ECB, EU Summit
The stage is setting up for the Euro and earlier this morning, EUR/USD[5] pushed up to a fresh four-month-high, finding resistance in the lower-portion of a zone that’s been in-play going back to 2018. I had looked into this in yesterday’s webinar, relating the bullish move in EUR/USD to the bearish move in USD.
In EUR/USD, the big zone of resistance referred to above spans from 1.1448 up to the 1.1500 psychological level. The latter of those prices is taken from the 2017-2018 major move with 1.1448 being the 50% marker. This zone first came back into the equation in May of 2018 as the Euro was selling off on the back of rising political risk. This was shortly after that M5/Matteo Salvini wins in Italy as global market participants geared up for a debt standoff between Rome and Brussels.
That zone slowed the sell-off, first coming into play in May but finally giving way in November of 2018. A late-year rally saw prices firm
