EURUSD plunges after ECB meeting
The euro halted its steep advance, and the EURUSD pair was down 1.30% at the time of writing, trading at around 1.1120 as the European Central Bank failed to deliver any meaningful news.
Earlier today, Christine Lagarde announced that rates would remain unchanged, with the deposit rate unchanged at -0.50%.
However, in order to alleviate liquidity shortages, the ECB announced a boost to its Quantitative Easing program and added a "Temporary Envelope of 120 billion EUR in asset purchases."
The ECB also announced a new LTRO "with an interest rate that is equal to the average rate on the deposit facility. The LTROs will provide liquidity at favorable terms to bridge the period until the TLTRO III operation in June 2020.
From other news, markets are still in the panic mode, with US equities cratering 8% today, while EU benchmarks were down 10% amid the worsening coronavirus pandemic.
The resistance now seems to be in the 1.12 area, and if not held, the euro could spike to 1.13 quickly, with the current cycle highs of 1.15 as the primary target for bulls.
On the downside, the support seems to be near 1.11 and afterward at around the psychological level of 1.10.
Author
Axiory Global Research Team
Axiory Global Ltd.
Axiory Global Ltd. is a Forex broker that is trying to change rigid principles in the financial sector by a constant process of innovation. Since its beginning in 2011, the mission of Axiory Global Ltd.
