- EUR/USD’s hourly chart shows a lower highs, lower lows setup.
- Dovish ECB expectations will likely keep the EUR on the back foot.
EUR/USD is looking south with a bearish lower highs and lower lows setup on the hourly chart.
Indeed, the sell-off has stalled around 1.1130 in the last 18 hours or so. A flag breakdown – a bearish continuation pattern – confirmed earlier this week put the pair on a path to new 2019 lows below 1.1109.
Therefore, the new found support near 1.1130 will likely be breached to the downside in the next few hours. Notably, a violation of the minor ascending trendline on the hourly chart relative strength index could pave way for a fresh sell-off toward 1.11.
As of writing, the pair is. trading at 1.1137. The European Central Bank (ECB) is widely expected to keep rates unchanged today and set the stage for a rate cut in September by sending out a strong dovish message.
The markets expect the central bank to cut rates in September and restart its QE program in the near future.
Hourly chart
Trend: Bearish
Pivot points
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