ECB And Turkey Rate Decisions To Impact Forex Markets Today By Emre Karaoglu

ECB Rate Decision

The ECB will announce its rate decision and forward guidance at 11:45 GMT on Thursday. European leaders have formally appointed Christine Lagarde as the next President of the ECB. Ms. Lagarde will take office on 1 November. This week’s meeting will be the final monetary policy meeting for Draghi.

Weaker inflation in the eurozone and downside risks from global trade issues keeps the pressure Eurozone Economy. We are going to closely watch a package of measures to support a eurozone economy which is slowing down under the impact of U.S. trade policy.

EUR/USD: The EUR/USD pair showed an upward movement above the main support level of 1.1114. Ahead of the ECB Rate Decision, if the rise continues, we will see the 1.1165 daily resistance level. Moreover, in order for the upward movement to gain more power, it needs to break out and stay above 1.1165 on a daily basis. On the downside, if the price drops below 1.1114, we will follow the next support level at 1.1052

Support : 1.1114 – 1.1052 – 1.0979

Resistance : 1.1165 – 1.1237 – 1.1307

Turkey Rate Decision

The market expects the Central Bank of Turkey to deliver a 100bp rate cut. The Turkish lira’s reaction will depend on whether the CBT over-delivers versus market expectations

USD/TRY: Keep your eye on Turkey Rate Decision today. Ahead of the Rate Decision, we focus on the major level of 5.7679 in the USD/TRY pair. In order for the Turkish Lira to gain more value versus the US Dollar, it needs to stay below 5.7679 on a daily basis. Should this occur, the support level will be placed at 5.6027. On the upside, we will follow the key resistance level at 5.9763.

Support: 5.6027 – 5.4538 – 5.2883

Resistance: 5.7679 – 5.9763 – 6.1475

GBP/USD: The GBP/USD pair is now testing the 1.2947 main resistance level. In order for the rise to gain more momentum, it needs to break out and stay above 1.2947 on a four hourly basis. At this point, the next resistance level will be at 1.3046. Otherwise, the key support level will be found at 1.2838 again.

Support: 1.2838 – 1.2768 – 1.2671

Resistance: 1.2947 – 1.3046 – 1.3136

By Emre Karaoglu – Oct 24, 2019

Source: Investing.com

 

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