FxWirePro: EUR/USD dips after ECB policy decision ,more downside expected
The EUR /USD pair declined on Thursday after the European Central Bank kept interest rates on hold and said it would keep money taps fully open and repeated interest rates would stay at record lows. The ECB dropped a ref…
The EUR /USD pair declined on Thursday after the European Central Bank kept interest rates on hold and said it would keep money taps fully open and repeated interest rates would stay at record lows.
The ECB dropped a reference to further interest rate cuts, while repeating it expects rates to remain at record lows for an extended period and well beyond its asset purchase programme.
The ECB decision was largely in line with expectations and many investors were holding fire ahead of British election results and Comey's testimony, which will turn the spotlight on a clash between him and U.S. President Donald Trump.
The euro dropped to $1.12165 from $1.1241 following the statement and was last trading at 1.1215.
The ongoing weakness is set to continue for this pair as the resistance level at 1.1284 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.1232, a break above this level would expose the pair to next resistance level at 1.1284.
To the downside, immediate support can be seen at 1.1190, a break below at this level will open the door towards next level at 1.1167.
