On Friday, the US dollar started actively gaining in value. However, the euro and the pound sterling just slid to the lower limits of their narrow ranges, where they have been trading for a week already. The upcoming meetings of the key central banks became the main reason for such a shift in the market sentiment. Traders unexpectedly focused on the European Central Bank. There are assumptions that the central bank will be the first one to cut the benchmark rate. The current situation in Europe only proves this fact. It means that the key interest rate in the US will remain higher than in Europe. Nevertheless, the market situation will remain unchanged until the central banks publish the results of their meetings. The euro and the pound sterling may even rise a bit. However, an active discussion of a possible key interest rate cut by the ECB may affect the market. On the trading chart, we see that last week, the euro/dollar pair was trading within the range of 1.0840/1.0930. The hovering points to the accumulation process. This, in turn, may lead to a sharp price movement amid the expected economic events. Since the pair is trading within a particular range, it is better to apply a breakout strategy. The pair is likely to show an outgoing impulse, which will end the flat movement and indicate its direction. Traders will consider the upward movement if the price consolidates above 1.0940 on the four-hour chart. This action will allow the pair to climb toward the psychological level of 1.1000. The downward scenario will become possible if the price settles below 1.0840 on the four-hour chart. In this case, the euro may slide to 1.0800 and launch a full-scale correction. The situation with the pound/dollar pair is almost the same. Notably, the range where the pair has been hovering is a bit wider compared to the euro’s one. The channel was formed between the levels of 1.2300 and 1.2440. The pair has been trading within the mentioned range for almost two weeks. Otherwise, the pair would have formed a correction. Since the flat movement is still intact, traders may apply a breakout strategy. A downward scenario will become possible if the price settles below 1.2300 on the four-hour chart. This may lead to a formation of a full-scale correction. The upward movement will take place if the price consolidates above 1.2450 on the four-hour chart. This will point to the prolongation of the uptrend.

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00:00 INTRO
00:15 ECB’S KEY INTEREST RATE
00:45 QUOTES
01:07 EUR | USD
02:14 GBP | USD