- The pair comes under downside pressure following ECB decision.
- Draghi said TLTROs pricing will be announced in next meetings.
- FOMC minutes will grab all the attention later in the day.
The selling pressure is now hitting the single currency and is dragging EUR/USD to the area of daily lows in the boundaries of 1.1250.
EUR/USD offered on dovish ECB
Spot has come under pressure today as Draghi’s presser is under way. President Draghi said it is still premature to decide on any tiered deposit rate system or TLTROs terms, as these issues need further discussion by the Council.
President Draghi also said that expansionary fiscal policies are supporting the economy in the region, although risks to the outlook remain tilted to the downside. In addition, Draghi reiterated the bank’s commitment to return inflation to the target.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1258 and faces the next support at 1.1230 (10-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7). On the upside, a breakout of 1.1284 (high Apr.9) would target 1.1318 (55-day SMA) en route to 1.1337 (200-week SMA).
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