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Hugo in HTO Trading,

EURUSD: Below 1.34 ahead of ECB Monetary policy

Yesterday investors were quick to dump the euro, driving the currency to new lows at 1.33326, but then erased all of its losses to trade back up closing at 1.33832 and form a hammer pattern and a bullish divergence.

It looks that EURUSD is starting find some significant support in the vicinity of 1.33 handle and is probably about as low as this market can go right now.

Today we have the release of ECB interest rate decision and monetary policy. The interest rate is expected to stay unchanged and ECB may loosen even more the monetary policy.

Expecting upward move to daily resistance at 1.3475 on a break above the previous day high at 1.3387 (scenario 1) or a break below previous day low at 1.3332 could push prices to 2013 November low at 1.3294 (scenario 2).