EUR/USD turns negative below 1.1800 post-ECB

ECB left its key rates unchanged, matching the broad consensus.
The pair drops below the 1.1800 milestone despite QE announcement.
Attention shifted to Draghi’s press conference and the QE taper.

Pablo Piovano FXStreet

The European currency loses traction today after the European Central Bank left its monetary policy unchanged at today’s meeting, with EUR/USD around the 1.1770 area for the time being.

EUR/USD focused now on Draghi’s presser

Spot lost the grip after the ECB’s Governing Council left its monetary status quo unchanged at today’s meeting, as widely anticipated.

Further out, the ECB left unchanged 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 -0.40%, respectively.

Additionally, the Governing Council said QE will run at €15 billion/month until end of December 2018, when it is intended to finish.

In the meantime, nervousness keeps running high in light of the upcoming press conference by President Draghi, where further details on the recent announcement of the QE programme should be in centre stage as well as the update on economic growth and inflation in the region.

EUR/USD levels to watch

At the moment, the pair is down 0.13% at 1.1776 and a breakout of 1.1850 (high Jun.14) would target 1.1854 (38.2% Fibo of 1.2413-1.1508) en route to 1.1998 (high May 14). On the downside, the initial support aligns at 1.1756 (10-day sma) seconded by 1.1728 (21-day sma) and finally 1.1617 (low Jun.1).

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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