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EUR / USD doesn’t show much balance as traders prepare for ECB meeting tomorrow

EUR / USD was little changed on the day, remaining stickier around 1.1600

After Monday’s drop, the pair didn’t really do much as yesterday’s slight advance was capped by the 200-hour moving average (blue line), with sellers maintaining a more bearish bias at short term.

The confluence of major hourly moving averages is now seen at 1.1623 and as long as price action stays below that sellers are in control in the short term.

The limited move so far also reflects a more timid mood as traders wait for the ECB meeting tomorrow to perhaps provide a catalyst for a move.

Added to this are large maturities near and at 1.1600 (another tomorrow as well), helping to keep the price action more contained alongside the lack of momentum highlighted above.

The ECB is not expected to present many changes tomorrow, but the key thing to watch will be its language on the inflation front. While there may be a concession on the transitional narrative, expect the market to continue to press the central bank over rate expectations – as is already the case in the past. last few weeks.

But if the ECB pushes this back, the euro may ease a bit in the later stages of the week, with the bearish bias seeking to target the October 12-13 low @ 1.1525; everything else being equal.
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