Last Friday, US non-agricultural employment was much lower than expected, which suppressed the USD index to a one-month low. Inflation in the European Union soared to 3% in August, which exceeded the ECB’s policy target by 1%. The market is worried that the ECB will decide to reduce the scale of bond purchases as soon as this week’s meeting. The policy is expected to remain unchanged, but it may imply to adjust the speed of buying bonds. More important than the speed of debt purchases is the European Central Bank's outlook for a follow-up policy.
From a technical point of view, Euro’s daily candle is closed with Doji star on high position. The market’s momentum is weak, and it is under pressure at the 1.1910 which is the previous key resistance. H4 graph shows formation of an upward structure, the moving average diverges, BOLL did not close, and MACD remains bullish. Overall prioritize operation within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1910
Resistance:1.1890-1.1910-1.1950
Support:1.1850-1.1810-1.1775
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