EURUSD continues to trade lower ahead of the ECB policy meeting. The pair hits low of 1.11220 15 pips above the level 1.11069 (May 23rd low). The possibility of further weakness below 1.1100 will happen only if the central bank maintains a more dovish stance
ECB cuts interest rates by 10 bpbs and planning to go for QE in the coming months if the outlook does not improve. The pair will break the low of 1.11069 and the chance of reaching till 1.09097 (161.8% fib) is possible.
Option 2: ECB rate cut and QE announcement in this policy meeting will put more pressure on Euro and a dip till 1.000 is possible.
Euro to trade higher if ECB will keep its interest rates unchanged as markets already priced in 10 bpbs rate cut. A jump above 1.11600 till 1.1200 is possible.
