EUR/USD rises modestly ahead of ECB day

By FXstreet.com | September 03, 2014 AAA

FXStreet (Córdoba) - The euro finished modestly higher against greenback on Wednesday, trading around 1.3150 and ahead of the ECB decision. During the American session the EUR/USD found support at 1.3130 and rose back toward 1.3150.



On Thursday the ECB will announced its decision on monetary policy and Mario Draghi will give a press conference. Volatility is expected on the euro.



“While we expected the interest rate and growth trajectory to sustain the downtrend in the euro, we are concerned about the risks of either disappointment with the ECB or "sell the rumor, buy the fact" type of activity” said Marc Chandler, Global Head of Currency Strategy at BBH.



EUR/USD technical outlook



“The EUR/USD 1 hour chart shows momentum heading slightly higher above its midline, with 20 SMA gaining bullish slope and offering intraday support in the 1.3130 level”, says Valeria Bednarik, Chief Analyst at FXStreet.



The 4-hour chart shows indicators in neutral territory, “with moving averages maintaining a strong bearish slope and keeping the pressure to the downside”, notes Bednarik.



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