• EUR/USD has displayed a modest rebound to near 1.0820 after the carnage.
  • The ECB kept its interest rate unchanged and provided dovish guidance.
  • The US Treasury yields rebounded on advancing bets over a tight Fed policy.

The EUR/USD pair has witnessed a short-lived pullback after printing a fresh yearly low at 1.0757 on Thursday. An intense sell-off in the shared currency came after the European Central Bank (ECB) announced an unchanged interest rate policy, well in line with the market expectations.

Technically, the maintenance of a status quo by the ECB President Christine Lagarde was already in the expectation category, therefore dovish guidance sounded in the commentary forced the market participants to dump the euro. ECB’s Lagarde unfolded the guidance on the interest rates stating that an interest rate hike will arrive only after the end of the ‘Asset Purchase Program’ (APP), which will conclude in the third quarter.

The dovish stance on further policy announcements is backed by a troublesome situation in Europe due to a higher inflation rate, which is 7.5%, and a slow growth rate amid the Ukraine crisis. The situation is going to get worsened for the ECB as the oil prices are set for the next upside move and energy bills will haunt the households in Europe.

Meanwhile, the US dollar index (DXY) has regained strength amid a firmer rebound in the US Treasury yields. The DXY is balancing above 100.00 and is likely to extend gains considering the long weekend uncertainty in the world markets. The 10-year US Treasury yields have recovered two-trading sessions losing streak and have reclaimed a three-year high at 2.83%. The US Treasury yields shoot higher on aggressive tightening plans of the Federal Reserve (Fed) as Fed President and FOMC member John Williams on Thursday cited that the Fed should reasonably consider a 50 basis point (bps) interest rate hike in May’s monetary policy.

EUR/USD

Overview
Today last price 1.0816
Today Daily Change -0.0067
Today Daily Change % -0.62
Today daily open 1.0883
 
Trends
Daily SMA20 1.0982
Daily SMA50 1.1117
Daily SMA100 1.1213
Daily SMA200 1.1447
 
Levels
Previous Daily High 1.0894
Previous Daily Low 1.0809
Previous Weekly High 1.1054
Previous Weekly Low 1.0836
Previous Monthly High 1.1233
Previous Monthly Low 1.0806
Daily Fibonacci 38.2% 1.0862
Daily Fibonacci 61.8% 1.0842
Daily Pivot Point S1 1.083
Daily Pivot Point S2 1.0777
Daily Pivot Point S3 1.0745
Daily Pivot Point R1 1.0915
Daily Pivot Point R2 1.0948
Daily Pivot Point R3 1.1001

 

 

 

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