EUR/USD remains depressed well below 1.1300 post-ECB

EUR/USD stays offered in the sub-1.1300 region on Thursday.
ECB left its key rates unchanged, as widely expected.
Investors’ focus now gyrates to Lagarde’s press conference.

Pablo Piovano FXStreet

The selling bias in the single currency stays unchanged on Thursday, motivating EUR/USD to keep navigating in the red territory below the 1.1300 barrier.

EUR/USD now focuses on Lagarde

EUR/USD remains on the defensive and reverses part of the recent multi-session advance on the back of the resumption of some buying interest in the greenback, at the time when the ECB failed to ignite some upside bias in spot following its unchangd decision on monetary policy.

In fact, no reaction from the pair after 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 ECB said the net purchases of assets under the PEPP will terminate by end of March. Regarding the APP, the bank's monthly purchases will be of €40B in Q2, €30B in Q3 and €20B from October.

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

EUR/USD levels to watch

So far, spot is losing 0.25% at 1.1273 and faces the next up barrier at 1.1329 (weekly high Feb.2) seconded by 1.1369 (high Jan.20) and finally 1.1429 (100-day SMA). On the other hand, a break below 1.1121 (2022 low Jan.28) would target 1.1100 (round level) en route to 1.1000 (psychological level).

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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