EURUSD recovered sharply on board-based US dollar selling. It hit a high of 1.0940 at the time of writing and is currently trading around 1.10922.
ECB cuts rates by 25 bpbs as widely expected. It also lowered rates on Marginal lending facility and refinancing operations by 60 bpbs to 3.65%.
The central bank President said that further policy action would be data-dependent. They never gave any hint about the next rate cut.
The annual PPI and Core PPI came below expectations increasing the chance of an aggressive rate cut by Fed.
The pair trades above short-term (34 AND 55 EMA) in a 4-hour chart. Major resistance to watch- 1.1100/1.1140/1.1168. Bullish continuation only above 1.12050.
Major support- 1.10585,1.1030/1.100/1.09880.
It is good to buy on dips around 1.10580-60 with SL around 1.0150 for a TP of 1.11500.
