Balanced tone from ECB chief Lagarde keeps the euro at familiar levels for now
The Euro refrained from stronger reaction on comments from ECB President Christine Lagarde, with spike above 1.11 handle on remark pointing to moderate increase in inflation, being short-lived.
Lagarde’s comments on press conference were generally balanced as she pointed to moderate increase in underlying inflation and moderate growth of the bloc’s economy, but also signaled prolonged accommodative policy and short-term risk will remain shifted to the downside.
The EURUSD pair so far remains within existing range, with key Fibo support at 1.1079 holding and keeping the risk of extension of larger downtrend limited, while today’s repeated upside rejection signals that bulls are lacking strength for more significant recovery attempts and suggesting the pair may hold in prolonged sideways mode.
Res: 1.1105; 1.1132; 1.1140; 1.1152
Sup: 1.1079; 1.1070; 1.1041; 1.1000