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The ECB decision is coming up! Here’s a pair that could be due for either a bounce or big break, depending on how the event turns out.

Currency Snapshot:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • ECB monetary policy decision at 12:45 pm GMT
  • ECB press conference at 1:30 pm GMT

What to Watch: EUR/AUD

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

The Aussie may have enjoyed a strong run from impressive jobs data in the Asian session, but it could return those gains to the euro if the ECB sounds more upbeat than usual.

On its 1-hour time frame, EUR/AUD is trending higher inside a rising channel and the pair is currently testing support. The 100 SMA is above the 200 SMA to suggest that support is more likely to hold than to break, and these indicators coincide with the channel bottom to add to its strength as support.

Stochastic is indicating oversold conditions or exhaustion among sellers, too. This could be the chance for buyers to hop in and take price back up to the top of the channel around 1.6250.

No actual changes are expected from the ECB today as the focus will be on the strategic review to be launched. Any major adjustments to price stability and growth targets could impact the euro, with some analysts predicting that there could be more optimism surrounding recent economic data.

Planning on trading a bounce or a break on EUR/AUD today? Here’s MarketMilk’s volatility guide to help you set up your stop losses:

EUR/AUD Volatility from MarketMilk
EUR/AUD Volatility from MarketMilk