EURUSD currency pair rises after ECB meeting

All eyes were on the European Central Bank (ECB) press conference yesterday as EURUSD traded around significant technical support. After there were no changes announced the currency pair initially surged higher.

However, after a disappointing Eurozone consumer confidence report shortly after and a few ECB members opposing the bank’s new guidance, EURUSD fell back and attempted to break through key technical support.

Source: Admirals MetaTrader 5, EURUSD, Weekly – Data range: from Nov 19, 2017, to Jul 22, 2021, performed on Jul 22, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

When we look at the long-term, weekly chart of EURUSD shown above it’s clear to see the descending resistance and ascending support levels (thick black lines) that form a technical wedge formation, otherwise known as a symmetrical triangle chart pattern.

After a brief bounce off this level during the ECB meeting, sellers took control and sent the currency pair back down. If the price can break through this technical support then traders will be eyeing the next major horizontal support level (thin black line) around 1.1630.

That would mean a potential 150 pip drop lower.

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