EUR/USD loses momentum above 1.1800 post-ECB

EUR/USD gathers further traction and surpasses 1.1800.
The ECB left the monetary conditions unchanged, as expected.
Focus now shifts to Chairwoman Lagarde’s press conference.

Pablo Piovano FXStreet

EUR/USD picks up extra pace and regains the 1.18 mark and a tad above following the ECB’s interest rate decision.

EUR/USD now looks to Lagarde

EUR/USD navigates the 1.1800 neighbourhood after the ECB’s Governing Council left its monetary status quo on hold at Thursday’s event, matching the previous expectations.

In fact, the ECB left intact the interest rate on the main refinancing operations, the interest rate on the marginal lending facility and the deposit facility at 0.00%, 0.25% and 0 -0.50%, respectively.

The central bank said rates will remain at current/lower levels until inflation hits the 2% target. In addition, the ECB will buy bonds at a significantly higher pace than earlier in the year. Furthermore, the PEPP is expected to run until end of March 2022 or when the coronavirus pandemic ends and its size was affirmed at €1.85 trillion, with monthly purchases of assets at €20 billion

Moving forward, market participants will now closely follow the usual press conference by Chief Lagarde and the subsequent Q&A session.

EUR/USD levels to watch

So far, spot is gaining 0.02% at 1.1792 and faces the next up barrier at 1.1895 (weekly high Jul.6) followed by 1.1975 (weekly high Jun.25) and finally 1.2002 (200-day SMA). On the flip side, a breakdown of 1.1751 (monthly low Jul.21) would target 1.1704 (2021 low Mar.31) en route to 1.1602 (November 2020 low).

Author

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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