Traders eye ECB press conference and interest rate decision. We expect the policy remains unchanged. The ECB press conference likely to highlights the inflationary pressures. The fall in the oil prices pressures the ECB to puts the euro exchange rate down. After the QE the euro outlook shifted to stable.
The cross closed below all the daily moving averages. The cross made a double top at 139.00 on the weekly chart. The 100Wema finds at 134.60 below this, immediate support finds at 134.20.
The cross has been forming a bearish head and shoulder pattern, neckline remains between 133.30 and 133.00.
In the hourly chart, the cross made a higher low. The selling pressure builds below 134.60 and panic likely to be below 134.00 towards the neckline.