ECB In Focus
The July ECB meeting is the main focus today and for the week in sum. With the market firmly expecting a dovish result, the ECB will likely need to surpass these expectations in order to send EUR meaningfully lower. Better risk reward, therefore, is likely found to the topside. If the ECB disappoints doves today, this could fuel a quick unwinding of EUR short positions, sending the single currency higher.
Where to Trade The ECB Meeting?
The recent rally off the .8505 level is potentially craving out a double bottom reversal against the level. With price breaking above the local bearish trend line and MACD turning bullish. There is room for further upside. The .8678 level has capped the move for now though a break higher in EUR could put the focus back on upside today. Look for longs above the .8583 support targeting .8678 and .8726 initially.