EUR/USD - EUR/USD is Trading Lower Ahead of ECB - 12/07/2016 (GMT)

The EUR/USD pair slipped more than 0.4% following the significant rebound on the psychological level 1.0800 during yesterday’s session. The latter significant obstacle which coincides with the 200-SMA on the 4-hour chart pushed the price lower ahead of the European Central Bank interest rate decision tomorrow. Also, the price failed to retest the 1.0690 support barrier and now is developing near the 1.0730 price level. The next initial target is the aforementioned psychological handle, however, a penetration of 1.0690 to the downside will expose the price further down to the previous 20-month low at 1.0505. On the short-term timeframe, the price continues trading above the bullish crossover of the 50-SMA to 100-SMA and below the 200-SMA. On the daily chart, the RSI indicator lies slightly above the 50 level, although with no clear directional strength. The MACD oscillator is rising but is still moving in a negative territory.