EURUSD Trading at Resistance Level – Will it Rally Beyond?

eurusd

The EURUSD is trading slightly lower ahead of the European Central Bank interest rate decision. The market is expecting interest rates to remain stable.

Investors focus will be on the European Central Bank President Mario Draghi comments about the outlook of the economic and possible intervention by the bank, if needed.

The ECB decision is expected on Wednesday early morning.

The Euro currency has been doing well against the USD for a number of months, even though, it hasn’t rally beyond the resistance level at around 1.35.

Yesterday was a good day for the pair to push higher and break beyond the resistance but the rally failed. Perhaps traders are cautious about the economic and political outlook for the Euro Zone.

In the current position, the EURUSD could break in any direction, but most technical analysts are bullish on the pair. Long term technical indicators are pointing to further rise in price. Nevertheless, the pair will be punished by traders if the ECB is certain that more money will be loan to banks and financial institutions to support the euro community.

On Thursday 03 of October, Retail Sales for the EURO Zone are expected with mixed numbers, so it will be difficult trading the pair based on it. Perhaps some support will come from the outcome of the political deadlock in Washington. Otherwise, expect the EURUSD to trade sideways or lower.

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