EUR/USD fades the post-ECB bullish spike to 1.1300 mark, back near 1-week lows


  • EUR/USD rallies nearly 100 pips after ECB left interest rates unchanged.
  • The ECB introduced new LTRO and raised bond purchases by 120 billion.
  • The pair quickly reversed an early uptick to the 1.1300 round-figure mark.

The EUR/USD pair quickly reversed an early dip to the 1.1200 mark, or one-week lows and rallied nearly 100 pips post-ECB policy decision, albeit fizzled out rather quickly.

The shared currency attracted some dip-buying after the European Central Bank (ECB) decided to leave interest rates unchanged, contrary to broader market expectations of at least 10 bps cut.

Meanwhile, the ECB announced a new LTRO at 25 bps below the main refinancing operations to provide immediate liquidity and raised monthly bond purchases by 120 billion.

Given that deposit rate is already at record lows, at -0.5%, the ECB was short of options. Hence, the decision to leave interest rates unchanged might still not be seen as a big surprise.

This was evident from a sudden intraday turnaround from the 1.1300 neighbourhood, which has now dragged the pair back closer to the lower end of its daily trading range, or one-week lows.

Moving ahead, market participants now look forward to the latest staff projection. This will be followed by the post-meeting press conference, where comments by the ECB President Christine Lagarde will play a key role in influencing the near-term sentiment surrounding the common currency.

Technical levels to watch

EUR/USD

Overview
Today last price 1.1207
Today Daily Change -0.0062
Today Daily Change % -0.55
Today daily open 1.1269
 
Trends
Daily SMA20 1.102
Daily SMA50 1.1046
Daily SMA100 1.1068
Daily SMA200 1.1102
 
Levels
Previous Daily High 1.1367
Previous Daily Low 1.1257
Previous Weekly High 1.1355
Previous Weekly Low 1.1027
Previous Monthly High 1.1089
Previous Monthly Low 1.0778
Daily Fibonacci 38.2% 1.1299
Daily Fibonacci 61.8% 1.1325
Daily Pivot Point S1 1.1229
Daily Pivot Point S2 1.1188
Daily Pivot Point S3 1.1119
Daily Pivot Point R1 1.1338
Daily Pivot Point R2 1.1407
Daily Pivot Point R3 1.1448

 

 

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