Thursday, November 6, 2014

$EUR/USD unchanged post-ECB

The common currency largely bypassed the ECB decision today, with EUR/USD keeping the trade above the 1.2500 handle.

$EUR/USD now looks to Draghi

In line with market consensus, the ECB left unchanged its monetary policy in November, with the refi rate at 0.05% and the deposit rates at -0.20%. Market participants are now waiting for the press conference by President Mario Draghi, with the assessment of the recent easing measures to be in the centre of the debate.

$EUR/USD levels to watch

The pair is now up 0.27% at 1.2516 with the next resistance at 1.2577 (high Nov.4) ahead of 1.2591 (10-d MA) and then 1.2596 (200-h MA). On the downside, a break below 1.2439 (low Nov.3) would expose 1.2431 (low Aug.22 2013) and then 1.2342 (low Aug. 21 2013).