The market is changing a bit of direction ahead of the Easter holidays, and more importantly, the EUR is trying to stabilize ahead of the ECB today. This while US yields are dropping and stocks have been trying to gain some positive momentum.
Today, the focus will be on the ECB. The EUR/USD pair may see more upside if the ECB finally wakes up and fights inflation by adjusting the monthly purchases, with a rate hike in view for the end of this year. Or there is a chance that they will stick to a dovish policy, in which case the euro may suffer more.
Technically speaking ,we see some strong support for the pair around 1.080 after yesterday's intraday rise which indicates that the five wave drop from 1.1185 is finished.
And we know that after the five waves are completed, the market makes a three-wave correction. Well, the recent bounce looks strong and impulsive on the hourly chart so there is a chance for higher prices in sessions ahead, towards 1.1-1.1050.
A drop back below 1.08 can very quickly send the pair even to 1.07./1.06.
