eurusd is consolidating before ECB rate decision

There hasn’t been much movement in eur/usd pair this week. It is neither rising, nor falling. No higher highs and no lower lows. It means market is stuck and waiting for something. No wonder for what. ECB rate decision is expected to be released at 11:45 GMT. No surprise is expected. However, any slight hawkish or dovish comment can send the pair up to previous high of 1.1697 (24^th of August) or down to the low of 1.1151 (28^th of August low) and possibly much lower. Either scenario is possible, but downside is probably favored. Why?

ECB is not planning to raise interest rates any time soon. FED is contemplating rate hike and this puts Euro in a vulnerable position. It is probable that current run to 1.1700 level was simply profit taking on short positions in Euro and a healthy counter trend move that happens in any trending market. However, FED seems to be too slow in their decisions and this can affect short term fall of US dollar. So, any sign of bearish or bullish ECB comments will affect exchange rate of the pair dramatically. 

One other possible bullish sign for Euro is that price broke below important 1.1233 level yesterday during US session, but is going back above it now. 

Let’s wait for European Central Bank. 

Pound is Still Falling against US dollar

Despite the fact that gbp/usd move down got slower, it is still going south. It seemed that there was going to be a reversal today. Why? If you look at 15 minute chart you can clearly see that Monday low did not exceed Friday low. It actually resembled a double bottom pattern. However, during European session today the lows was taken out and new low was made. Yesterday lowest point was at 1.5340 while Friday low stood at 1.5335. Now American session is in full swing and the lowest level today is 1.5304. The fall may continue further.

The best play for such market is, of course, selling rallies. Such an opportunity presented itself right on the London open. Three arrows on the chart indicate a reversal, which shows that counter trend rally is over and price is about to move down again. It is also obvious that 200 ema acted perfectly as a resistance level on 15 minute chart. Just look at those candle pins to see for yourself. 

Neither data from UK, nor from US could stop cable from collapsing. Well, more important news is coming at 14:00 GMT when ISM Manufacturing from US is released. Trade only from the short side till you definitely see a trend change.