FxWirePro: EUR/USD resumes downside after ECB decision, more downside expected
The EUR/USD declined at the beginning of the US session on Thursday as the pair found selling interest after the European Central Bank left interest rates unchanged. The ECB left its interest rates and policy stance unch…
The EUR/USD declined at the beginning of the US session on Thursday as the pair found selling interest after the European Central Bank left interest rates unchanged.
The ECB left its interest rates and policy stance unchanged as expected, keeping its unprecedented stimulus in place as inflation remains below target, even if growth is finally accelerating.
The ECB repeated its standard guidance that it expects its key interest rate to remain at present or lower levels for an extended period of time and well past the horizon of its asset purchases.
It also affirmed that its asset buys, which have been cut by a quarter to 60 billion euros this month, could be increased or extended if the outlook for the euro zone becomes less favourable.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0935 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, immediate resistance can be seen at 1.0886, a break above this level would take the pair towards next resistance level at 1.0935 levels.
To the downside immediate support can be seen at 1.0837, a break below this level will open the door towards next level at 1.0778.
