EUR/USD very suitable formation for long positions after adjustment

EUR/USD: Formation of three higher bottoms - a signal for the likely end of the downward movement.

Gap in the direction of the short-term movement, which if not filled during the Asian session, will create a perfect situation for European bank traders to be long intraday. This may accelerate short-term traffic and even see a break above 1.09.

This week, on 27 April (Thursday), is the ECB interest rate meeting. Expectations are that there will be no change, but Mario Draghi's press conference will be more important at 3:30 pm. Many central bank representatives are increasingly talking about a change in monetary policy, which, if implied by the ECB's president during the press conference, would be an additional prerequisite for purchases with the EUR.

At the other end, the dollar is under pressure from mounting tensions with North Korea, and from the uncertainty as to how Trump's plans for tax reform are actually feasible. Until now, the expectations generated by his loud statement last week are appreciated by the pair. Rather, the monetary policy of the Fed will remain cautious and it will be negative for the US currency.

Trader Nikolay Georgiev

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