FxWirePro: EUR/USD gains some upside momentum but still bearish
The EUR/USD pair inched higher on Thursday as the single currency found some strength after European Central Bank head Mario Draghi suggested it was less necessary to prop up the market through ultra-loose monetary polic…
The EUR/USD pair inched higher on Thursday as the single currency found some strength after European Central Bank head Mario Draghi suggested it was less necessary to prop up the market through ultra-loose monetary policy.
The European Central Bank pledged to keep its aggressive stimulus policy at least until the end of the year, but markets leaped higher as it signaled there was less of a need to prop up growth and inflation in the euro zone.
ECB President Mario Draghi said the Bank had removed one phrase from his standard introductory statement that pledged it would act "using all the instruments available within its mandate" if needed to achieve its objectives.
However, the central bank did not, announce any changes to its monetary policy in the statement.
The intraday trend remains bearish for this pair as Euro is set to come under pressure as the greenback is set to strengthen on expectations of a U.S. interest rate hike next week.
To the upside, the immediate resistance can be seen at 1.0618, a break above this level would expose the pair to next resistance level at 1.0680.
To the downside, immediate support can be seen at 1.0565, a break below at this level will open the door towards next level at 1.0513.
