Today’s meeting of the ECB and the decision not to change interest rates for the Eurozone caused a little more volatility in the recently quite boring currency market. On the EURUSD pair initially the price fell to the lowest level since May 2017 to slowly turn back and head north.
The daily candle formed the so-called Outside Bar or Bullish Engulfing . The minimum of the engulfing candle is placed on the support of the downward channel.
If we look at chart H4, the MACD oscillator is in an upward phase, and there is a high probability that the price will break out of the Outside Bar pattern at the top. A good confirmation of such a scenario will be that the MACD minimum will appear on the daily chart, perhaps at the end of tomorrow’s (Friday’s) session. Resistance of downward channel may be a natural demand target.
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