EURUSD Selling EUR continued for the last four consecutive sessions, was almost unchanged today at 1.0854 vs USD. Big Thursday ahead with ECB rate decision, monetary policy statement ECB President Lagarde press conference, not to forget the release of EZ inflation numbers. ECB is expected to cut its deposit rate by 0.25 as inflation in EZ dropped to 1.8. While the rate cut was already priced in, traders will reshift the focus to Lagardes press conference shortterm outlook by the central bank.

Technical Overview

3rd Resistance
1.1202

2nd Resistance
1.1160

1st Resistance
1.1088

Pivot Level
1.1000

1st Support
1.0950

2nd Support
1.0920

3rd Support
1.0835

 
Our technical call was accurate, three support levels have been executed. Market bears remained in control.

USDJPY Japans trade deficit expanded in September after exports fell by 1.7, and imports grew by 2.1 . USDJPY was unchanged today at 149.45, waiting for Japans national consumer price index later today. Japans inflation remained at 3, higher than BoJs target of 2, but the Japanese officials are unlikely to push for higher rates soon. We keep an eye on the performance of USD, busy calendar from the US on Thursday.

Price action is still heading higher with lower velocity, targeting the last major resistance at 150. 147.50 146 are important support levels. Positive channel persists.

Technical Overview…