EUR/USD: volatility over ECB disappointments, 1.1300 on the cards? - FXStreet

Valeria Bednarik, chief analyst at FXStreet explaind that the ECB unveiled its latest economic policy decision this Thursday, with actually no changes made to the monetary policy stance and some minor adjustments in its  growth´s forecast that were far from surprising the market.

Key Quotes:

"Draghi and Co. decided to leave rates unchanged at -0.4%, and announced that the ongoing bond-buy program will keep running until March 2017, or as long as required. The EUR/USD pair jumped to its highest in two weeks, printing 1.1326 as Draghi said that no additional stimulus was needed at this time, but later, during the press conference, he opened doors for more facilities in the future, while called for some help from European governments, hinting the need of some fiscal stimulus in the region."

"The American dollar was broadly softer ahead of the announcement, but after the initial hesitation, ended up gaining ground across the board. Nevertheless the greenback remains vulnerable on speculation the US Federal Reserve will remain on hold this month, and these intraday gains are not even close to revert the post-Payroll/ISM's losses.

The EUR/USD pair 4 hours chart shows  that the price is finding some support around the 1.1240/50 region, the 50% retracement of its latest slide, while also holding above all of its moving average,  although technical indicators retreated from overbought readings, heading now lower within positive territory. The pair has an immediate intraday support in the 1.1210/20 region, as long as it holds above it, the downward risk will remain limited. Renewed buying interest above 1.1300, on the other hand, can see the pair retesting August high at 1.1366."