The EUR/USD rallies on ECB rate decision but remains under pressure

Orlando Gutierrez Learn 2 Trade

The EUR/USD has rallied 13% from high to low to retest the long term bearish structure around the 1.20 level which confluences with the July 2012 lows.

This is a massive level of resistance and historic price action suggests a pullback before a possible breakout.

Today the ECB decided to maintain its interest rate and coronavirus-stimulus program unchanged.

The Euro rallied against the US Dollar but remain below the bearish value zone (1.20 + structure). The US Dollar remains very much under pressure which is pushing the Euro higher but with today's reference to more stimulus coming from the ECB we could see a weaker Euro in the coming days/week.

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Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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