The European Central Bank (ECB) meeting could shape up to be a very meaningful one for EUR/USD. A more hawkish ECB could help to reinforce a bottoming-phase in the pair around 1.08, economists at TD Securities report.

1.0950/60 will be a notable resistance marker for EUR/USD

“While we still think that EUR/USD has some kinks to iron out early this quarter as trade flows are re-oriented to reflect a shift in commodity channels, a more hawkish ECB could help to reinforce a bottoming-phase in EUR/USD around 1.08. This will require evidence of a topping out in US inflation, which we may have received the first read of earlier this week. 

“1.0950/60 will be a notable resistance marker for EUR/USD. A break above this followed by a move above 1.10 will be technically significant.”

See – ECB Preview: Forecasts from 12 major banks, tighter policy in response to higher inflation