DOVISH ECB TO WEIGH ON EURO
The Euro is at risk of losing ground in the near term as several members of the European Central Bank signal the provision of additional monetary stimulus in December.
From a technical view,
EUR/USD pair continued a weak corrective uptrend movement. Take note that the EUR/USD pair continues to trade within a bullish parallel channel. Therefore, a reversal in the opposite direction can be seen when the price approaches the upper boundaries of the channel which coincides with the 1.190 psychological round mark.
EUR/USD also looks at risk of a near-term pullback as buyers are struggling to breach the resistance range at 1.1880 – 1.1900. However, remember that the trend will remain bullish until the price settles below the bullish channel.
Trading for a bearish move at this time is irrelevant since there is support from upward trend. Thus, traders are advised to wait until the upward reversal or sign of weakness from buyers below 1.190 in order to to open short positions and aiming for 1.1820 and 1.1780.
