With the ECB press conference just a few hours away, everyone is expecting ECB President Mario Draghi to unveil the strategy regarding the extension size of the QE program. The trend in EUR/USD remains bearish, but technically there are many chances of a big bounce.
Red line - weekly trend-line support
The weekly chart above shows that the price got rejected at the weekly cloud resistance at 1.1350-1.14 and we are heading towards new lows. The trend line from 2008 is giving us the 1.02-1.03 area as the target to finish the decline. Stochastic oscillator is at oversold levels so we can find an important bottom anywhere between 1.01 and 1.03.
Blue lines - bullish wedge
The pair is grinding lower inside a wedge and below the Ichimoku cloud. The trend remains bearish. The 1.0640 mark is an important resistance, and the level of 1.05 is a wedge support. Before a bullish reversal we could see a throwover below the support of 1.05 towards 1.04. I prefer to be neutral today and wait and act after the ECB press conference.