Yesterday, the euro and the pound sterling nosedived after Credit Suisse announced its “material weakness”. Today, the European currencies may rebound if the Swiss National Bank supports the lender.In fact, a decline in the currencies could also be explained by the expectations of the ECB meeting. Notably, the magnitude of the key rate hike is of secondary importance. Traders will mainly focus on the comments that will follow the meeting.If Christine Lagarde calms down investors, saying that the regulator has already taken measures to improve the situation and prevent its deterioration, the euro will have a chance to recover. In this case, the pound sterling will also follow its counterpart. Otherwise, the European currencies will continue falling.On the trading chart, we see that the euro slumped by more than 200 pips against the US dollar. Such a decline led to an inertial movement. As a result, the pair hit a new local low of the downward cycle. However, the price met the support level of 1.0500, which resulted in a technical rebound.Under the current conditions, the rise could be explained by the oversold conditions of the euro. This may allow the single currency to recoup some of its losses. Next price swings will take place just after the ECB announces its key rate decision. Meanwhile, the pound/dollar pair returned to the psychological level of 1.2000 amid the inertial downward movement. There, the volume of short positions dropped. The decline in the British pound was caused by the positive correlation with the euro/dollar pair, which lost 200 pips during the same period. It is quite possible that the uptrend is still in force. A rebound from the psychological level may boost the number of long positions on the pound sterling. Traders will get a technical signal of a rise only when the price climbs above 1.2150.The downward scenario will become possible if the price settles below 1.1950 on the daily chart. In the event of this, the pair will have more chances to touch a new local low of the downward cycle.

https://www.instaforex.com

FX Analytics - https://www.instaforex.com/forex_analytics
Forex Calendar - https://www.instaforex.com/forex_calendar
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv

Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_live_account
Forex Trading Contests - https://www.instaforex.com/forex_contests

List of official InstaForex blogs:
https://www.facebook.com/instaforex
https://www.instagram.com/instaforex/
https://twitter.com/InstaForex

#forex_news #european_session #instaforex_tv

00:00 INTRO
00:66 ECB KEY INTEREST RATE
00:33 CHRISTINE LAGARDE
00:57 EUR | USD
01:37 GBP | USD