EUR/USD: ECB Rate Cut Spurs Subdued Response, Bulls Aim for 1.1500

EUR/USD pared some of its gains after ECB 25 bpbs rate cut. It hits a intraday low of 1.13348 and currently trading around 1.13423.

On 17 April 2025, the ECB lowered its benchmark interest rates by 25 basis points, decreasing the deposit facility rate to 2.25%, in an ongoing cycle of easing in a disinflation process, with the euro area's headline inflation at 2.2% and that of core inflation at 2.4%. The ECB focused on economic uncertainty due to US-EU trade tensions threatening growth and inflation, though without taking a specific direction for interest rates. Even with slow economic growth and downwardly revised forecasts, the ECB wants to stabilize inflation around its 2% goal, weighing support for growth against inflation risk with policy adaptability in responding. Market response to the expected rate cut was subdued.

Technical Analysis of EUR/USD

The pair is holding  above short and  long term moving average in the 4-hour chart. Near-term resistance is seen at 1.1400; a break above this may push the pair to targets of 1.1420/1.1450/1.1500.  Major bullish momentum is likely only if prices are able to break above 1.150 targets 1.1600. On the downside, support is seen at 1.1330 any violation below will drag the pair to 1.1270/1.1240/1.1150/1.11000/1.10840/1.1000.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bullish

Average Directional Movement Index (ADX) - Bullish

 It is good to buy on dips around 1.1300 with a stop-loss at 1.1245 for a target price of 1.150.