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Wednesday, April 3

3rd Apr - Views & Charts

Some random charts ahead of the central bank day Click to enlarge.

EURUSD Still in a downtrend, channel intact, recently in a flag-type formation. A test of the channel's upside could be next - if it comes, it's a good selling opportunity. Longer timeframes suggest a major weekly support area around 1.2650, so there's still more downside left. I've written about this previously - euro does not react at all to bad macro numbers from Europe, as the ECB's reaction function is non-existent - it has done nothing. The only way EURUSD reacts is through movements in the PIIGS yield and implied breakup risk.

ECB dates marked on the EURUSD chart with vertical red lines

GBPUSD has broken a key weekly support, has re-tested and rejected it two times now. Shorter timeframe show the pair currently at a minor support.

European monetary and economic charts ahead of the ECB.

ECB meetings marked with red vertical lines