ECB members Sabina Lautenschleger and Benoit Cœuré will speak today, during which we expect the euro to accelerate.
On Friday at the International Economic Forum the keynote speech was delivered by the head of the White House, Donald Trump, in which he stated that his program "America First" would be useful for the whole world.
US stock indices continue to update their highs and put pressure on the dollar which is near three-year lows. However, given the concerns of ECB members over the strengthening of the single currency, we expect that measures will be taken by the Central Bank officials aimed at weakening the euro.
Looking at our chart, we can observe that the pair found a strong resistance level near the mark of 1.25, from which it turned and headed down. Considering the candle configuration, we observe a "falling star" and on the next candle we observe an absorption model, which indicates a reversal pattern.
It is possible that our chart forms a "head and shoulders" figure and at the moment we have moved away from the maximum. The points for setting take-profit orders are at the levels of the shoulders near the 1.2290 and 1.2230 marks.
