EUR/USD eases from tops on steady ECB, near 1.1980

Pablo Piovano FXStreet

The single currency stays within range after the European Central Bank left its monetary policy intact at today’s meeting, with EUR/USD around the 1.1970/80 band.

EUR/USD now focused on Draghi

Spot remained apathetic after the ECB’s Governing Council left its monetary policy stance unchanged at today’s meeting, matching the broad consensus.

The European Central Bank left the interest rate on the main refinancing operations at 0.00%, the interest rate on the marginal lending facility at 0.25% and the deposit facility at 0 -0.40%.

In line with prior surveys, the ECB keeps the monetary conditions unchanged, although the focus of attention will now shift to the usual press conference by President M.Draghi.

Market participants have been speculating over the likeliness of some announcement regarding the current stimulus programme, although attention has shifted to the exchange rate level in light of the recent appreciation.

ECB now sees QE running until end of December or even beyond, while the key rate is expected to remain at current levels well past QE.

EUR/USD levels to watch

At the moment, the pair is gaining 0.48% at 1.1974 and a break above 1.1993 (high Sep.7) would expose 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop). On the downside, the immediate support lines up around 1.1924 (10-day sma) seconded by 1.1847 (10-day sma) and then 1.1823 (low Aug.31).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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