AtoZ Forex presents the April ECB Minutes summary for the last European Central Bank meeting minutes, meanwhile EURUSD found itself resistance as we analyzed few months ago.
Let’s look into the main points from April ECB Minutes summary:
1 – “Broad agreement to maintain guidance”.
This is overall a positive statement for the stability of the European economy. As the governing members are in broad agreement in the monetary policy.
2 – “Some of the governing members argued that economic risks were broadly balanced”.
This is also a positive point, from broader picture perspective. As an analyst for me, this point gives hope that the governing members have broader analytic vision covering the economic risks too.
3 – “US policy, Brexit and Chinese rebalancing are key sources of uncertainty”.
I don’t think that governing members could have overseen this point. Especially as the US congress has initiated Trump impeachment discussion yesterday with an initiation from congressman Al Green.
4 – “Medium-term staff projections remain broadly valid but some noted that 2017 growth stronger than expected”.
Some of the member states are giving signs of prosperity, while Greek economic KPIs are not positive. We have to review the overall and regional growth.
April ECB Minutes summary
Overall speaking, looking into the April ECB Minutes summary we could not see anything negative or any significant or unexpected change. The main driver meanwhile, will be the issues circling around the US president Donald Trump and further possible impeachment attempts. Then the German elections will be on top of the agenda, as well as the snap elections in Austria.
EURUSD technical outlook
Currently EURUSD is attempting to break below the 1.1080 – 1.1100 support zone. This level is a significant level. We have seen the market test this exact zone on May 30 2016 with an immediate reversal. This level was also a strong support zone in September 2015.
From technical analysis perspective I expect EURUSD to continue its bearish descent towards 1.1066 and to rise again to 1.1205 level. To have this view valid, we need to see the EURUSD pair to break below the descending trendline. This trendline is combining the highs of 24 August 2015 and 23 June 2016. Otherwise, 1.1100 will become a psychological support line and immediate targets will shift towards 1.1205 and 1.1274 levels.