10 April 2019 : EURUSD bounced off the 1.12 support level in the lead up to the European Central Bank’s latest monetary policy decision that is due on Wednesday.

Mario Draghi and his fellow policymakers are expected to sit on their hands this month, with little room to maneuver amid significant headwinds. While political tensions in France and Brexit uncertainties are beyond the central bank’s control, these factors have been highlighted by the IMF as putting downward pressure on growth, leaving the ECB to bide for time and watch how these risks manifest themselves in the real economy.

Taking a look at the technical picture, the EURUSD remains in a bearish trend on the weekly charts. There have been consistently lower lows and lower highs while the Moving Average Convergence / Divergence (MACD) trades to the downside. A solid breakdown below 1.120 has the potential to encourage a move lower towards 1.113 and 1.100, respectively. If 1.120 proves to be a reliable support, the technical bounce is seen taking prices back towards 1.135.

Source: Lukman Otunuga, FXTM Research

Reporting for EasyKobo on Wednesday , 10 April 2019 in Lagos, Nigeria