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    EUR/USD indecisive ahead of ECB decision

    © Dukascopy Bank SA
    "The ECB will probably leave itself room for more asset buying and deeper cuts into the negative to avoid giving the impression it's done with the easing. Markets are likely to respond in straightforward fashion with euro selling."
    - Credit Agricole (based on Bloomberg)

    Pair's Outlook
    The bears performed strongly until the beginning of US session on Wednesday when EUR/USD managed to erode losses and bounce back to 1.10. In the morning on Thursday we see another round of selling pressure, but movements remain quite hesitant. It is all about the ECB meeting today. In December EUR/USD had spiked on disappointment. Bearish outcome of the gathering may send the pair well down to 1.08, in move that is estimated by daily technical indicators. However, the bulls will try to catch the first monthly resistance at 1.1227 in case there is dissatisfaction with the ECB's policy.  

    Traders' Sentiment
    Difference between long and short open positions in the SWFX market has been fixed at two percentage points throughout the past 24 hours, while pending orders deepened further into the red territory.
    © Dukascopy Bank SA

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