EUR/USD capped by 1.3150/60 resistance ahead of ECB

FXStreet (Bali) - EUR/USD is trading at 1.3146, barely changed from its NY close, having posted a daily high at 1.3155 and low at 1.3143, ahead of the long-awaited ECB monetary policy decision.

According to Jim Langlands, Founder at FXCharts: "We now wait to see whether Mario Draghi announces any form of easing of monetary policy today. He is generally not expected to pull the trigger, despite what he said at Jackson Hole two weeks ago, but a surprise cannot be ruled out, and if he does ease then the Euro’s bear trend should resume."

Jim adds: "Elsewhere, focus will be on the US ADP Jobs numbers (exp +220K) which comes ahead of tomorrow’s employment/NFP and then the US ISM Non Mfg data (exp 57.5). Technically there is little real change to the Euro today which for now looks set to remain underpinned, while the 4 hour charts continue to unwind their oversold condition."

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is strongly bullish. At the time of writing, RSI is neutral at 46.84, down from 53.50 at the last hour close, while ADX is ranging at 22.83, up from 20.78 previous. Meanwhile, daily RSI is in neutral territory at 27.91. On the hourly EUR/USD chart, the 200 SMA is declining and currently at 1.3134, down from the previous hour close at 1.3168.