The euro currency is likely to move into this Thursday’s ECB meeting with the 1.1800 floor firmly established.
Prices briefly tested this level once again only to rebound higher.
However, gains remain muted as investors turn cautious ahead of this Thursday’s monetary policy meeting.
The current lower high potentially signals a bearish descending triangle pattern.
If the euro fails to breakout, then we expect that the 1.1800 level might give way. This will open the downside with the potential for the euro to drop to 1.1715 level once again.