Where is the $EURUSD before the #ECB announcement? The $ECB has a major announcement in a couple of minutes. Let’s examine from a technical point, where we stand before the decision.
Below is the 60m chart provided by Tradestation. The chart is with the IMTF™ Support/Resistance with setup zones. The chart shows a row black crosses which is where the Swing/Long term resistance. This is a major resistance so the probabilities are bearish as long as this resistance holds.
Below is the chart with IMTF™ with Fibonacci. Notice price broke the bullish 50% and 61% retracement to go bullish. Instead, it got the 78.60% and held SO FAR. It had a chance at the 50% to go bullish because you had the IMTF™ support but the problem was you had a bearish setup instead of bullish. This caused it to fail.
Below is the Ichimoku chart with IMTF™. It shows the bearish setup took price down 1.0525 which was the resistance it broke to start the last bullish trend. After that, it did a major pull back. Now, you have the day/swing support (purple dots) acting as support and the swing/long resistance (black cross), holding this in a small consolidation pattern. There is high probability for $EURUSD to consolidate with a higher probability towards the bearish side due to the major resistances.
Below is the weekly chart. It shows the sentiment is bearish where we retested the low from March 2015 and it went through a minor pull back and now trying to retest the low again. As long as the long term resistance at 1.0643 holds, the $EURUSD is bearish long term.
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