ECB President Mario Draghi on the Mic at 13:15 PM GMT, in his home country.
The speech is not supposed to focus on any monetary policy indications, therefore, market participants would most likely remain on their current bias when it comes to the EUR.
During the previous ECB Press Conference, Draghi did not raise any eyebrows, and especially did not make any remarks which would lead towards ECB rate hikes or even step-back of the QE. This lead EUR sellers to take action, resulting in a considerable drop in the EUR value.
At this stage, ECB policy makers are most likely focusing on the EU economy’s health and inflation targets, rather than forcing a interest rate decision.
Given that said, market players would probably stick with what they know already and would not deviate from the current trends, for now.
The USD rally had its mark on EUR, but, as per the previously posted “Opportunities On Radar – Month Of May Likes Volatility” article, it may run out of steam soon.
DXY (Dollar Index) – 2H Chart
The current Elliott Wave Count is suggesting that the DXY could revive for another leg up, this translating into more possible weakness ahead for EUR/USD.
- Bullish Retracement with corrective features
- Bearish Rising Channel
- Possible Bearish Divergence approaching
EUR/USD – 2H Chart
However, DAX (GER30) is in the spotlight, showing an interesting and possible bearish set-up.
- Ending Diagonal
- Bearish Divergence
- Possible end of Bullish sequence
DAX (GER30) – 2H Chart
Question is: Will it be EUR or DAX the asset that traders will focus on?
Many pips ahead!