As ECB President Mario Draghi said yesterday in a speech to the Netherlands legislators:
"it is still necessary to maintain the current very significant monetary stimulus for further growth of the underlying inflationary pressures. It's too early to talk about the final success".
The euro was rather weakly reacting to the performance of Mario Draghi. The EUR/USD fell by only a few points to the level of the day's opening by the end of yesterday's trading day. The passions about the presidential elections in France have subsided, and the extra soft monetary policy of the ECB is again on the forefront.
Today, the focus of traders will be the Bank of England's interest rate decision, which is published at 12:00 (GMT + 1). It is expected that by the majority of votes by the Monetary Policy Committee, the Bank of England will save the interest rate at the previous level of 0.25%. During the publication of the decision of the Bank of England, there is likely a sharp increase in volatility in the pound and the FTSE 100. Any signals about a possible increase in rates from the central bank will support the pound, including in a cross-currency pair with the euro. The volatility in the EUR/GBP may spread to a pair of euro with the dollar.
Nevertheless, the pair EUR/USD keeps positive dynamics above the key support level 1.0820 (200-period moving average on the daily chart) and remains within the upward channel on the daily chart, the upper limit of which runs near the level of 1.1050.
Negative dynamics may return if the EUR/USD falls below the support level 1.0770 (144-period moving average on the daily chart).
Support levels: 1.0875, 1.0850, 1.0820, 1.0800, 1.0770, 1.0700
Resistance levels: 1.0900, 1.0950, 1.1000, 1.1050
Trading recommendations
Sell Stop 1.0860. Stop-Loss 1.0915. Objectives 1.0830, 1.0800, 1.0770, 1.0700, 1.0630, 1.0580, 1.0500
Buy Stop 1.0915. Stop-Loss 1.0860. Objectives 1.0950, 1.1000, 1.1050, 1.1200, 1.1280, 1.1340
