You didn’t need a chart that told the future to guess what would happen when the European Central Bank made the interest rate decision today. As expected the ECB left all interest rates unchanged including the main refinancing operations at 0,00%, the marginal lending facility at 0.25% and the deposit facility at -0.50%.
But the pair that everyone was eyeing was the EUR/USD. Even with much uncertainty around the Euro, Legarde injected faith in the economy as she spoke about a strong rebound in macroeconomic activity. Although she drew caution to the fact that they are still at pre-corona virus levels. This along with poor jobless claims last week in the US has helped strengthen the Euro.
The EUR/USD pair has had a healthy recovery recouping more than half its losses and confirming a short term bullish trend. There is strong resistance at 1.1910, a break above this could see a surge to 1.2011. Short term consider an initial target at 1.1910 followed by 1.1950 and 1.1990. On the flip side look at support at 1.1850, 1.1810 and 1.1760.
#euro, #eurousd, #ECB, european central bank, #ACM, #asiacapital markets.