Trading EURUSD prior to the ECB Rate Announcement and press conference can be tricky unless traders are reading their higher timeframes. In this case, the 240 minute chart is clearly showing that a bias to the upside.
The 240 minute EURUSD chart below clearly shows that price is at an area of potential support (blue plus sign). Higher lows in price were formed as price approached this area. However, the Stochastics shows a lower low and that the market is oversold. The combination of these indications is that the EURUSD should go up.
Additionally, there is a potential reversal bar to the upside. Again, further confirmation that the EURUSD is likely to move up. While the initial rate announcement will create a move, it is the press conference that generally creates the most movement.
Going down in time to the 60 minute chart, the Stochastics is showing trend divergence (lower lows with higher lows on the Stochastics), indicating that the potential trend is ending a new upward move may be coming. The 60 minute chart likely could flip the ATR from red to blue then price will typically test the ATR (probably around 1.1500) prior to the rate announcement. This could potentially provide a nice entry level to the upside for trading EURUSD prior to ECB rate announcement.
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