As it was expected by analysts, the European Central Bank (ECB) decided keep the official interest rate by 1%. Euro/Usd reacted initially with a down of the 1.4147 the 1.4070 at the time of the decision and could have been due to speculation that the ECB could increase your plan’s repurchase covered bonds which was announced last month. All this downward movement was recovered and even exceeded the previous price decision with the first words from Trichet in his press conference. There was no great surprise that reiterate the decision of buying 60,000 million euros in covered bonds. tes. Then, at the end of the Conference, we see these movements voided. We think that the EUR/USD is going to continue with its downward trend that had taken in the last hours, a move which may coincide with the correction in the stock market. At the technical level, saw as the eur/usd attempted to pierce the collarbone of the h-c – H training (hombro-cabezas – shoulder) in the 1 hour chart.
He found a strong support in the middle of 200 hours (1.4065) to return to your point of origin. We do not rule out another attempt at drilling these brackets. If we look at the daily chart, the eur/usd is maintained within the bullish channel started in late April. The lower part of the same passes 1.40, which we consider to be a strong support for the beginning of the week coming. We will have strong rods at 1.46 and 1.47, levels that we do not believe he approached in the short-term.
We believe that the eur/usd will bring to the 1.40 1.41 in the short term and then may continue its trend towards 1.46. Meanwhile we are focused at the employment data to be released in USA on Friday and that can disrupt the market trends. We’ll see if it marks a new trend.