ECB Monetary Policy Decision in Highlights
The EUR/USD pair consolidates in a narrow trading range of 1.1800 – 1.1780 level on Thursday. Today, the investor's major focus will remain on the ECB policy decision. Yesterday, the calendar wasn't offering any major economic event, as the E.U. won't publish relevant data. However, the E.U. issued weekly MBA Mortgage Applications. However, on Thursday, the calendar will have significant events like ECB (European Central Bank) monetary policy decisions.
On Thursday, European Central Bank executives will describe how their fresh inflation aim concerns their plans for monetary policy in the future. The officials from ECB will have to adjust their language on the main refinancing rate, asset purchases, and other means for an updated strategy acknowledged earlier this month.
This updated strategy now aims for inflation of 2% and admits that it may momentarily run higher. The review will cover the way for a crucial debate in September on whether and how to repeal emergency bond-buying.
The backcloth is a resurgent euro-area economy that allows abrupt price hikes but also significant uncertainty. Mounting coronavirus cases are helping some nations to re-tighten travel curbs, and the influence of other hazards, such as Germany's disastrous floods, is still unknown. ECB officials say inflation pressures will subside and repeatedly caution against relaxing stimulus too soon.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1793
EUR/USD - Technical Outlook
The EUR/USD pair consolidates in a narrow trading range of 1.1800 – 1.1780 level on Thursday. Investors seem to feel hesitant before the release of the ECB monetary policy decision as this has the potential to drive trendy moves in the market. On the hourly chart, the direct currency pair EUR/USD has crossed above 50 SMA (simple moving average), which's now supporting the pair at the 1.1785 level.
At the same time, the triple top pattern is providing resistance at 1.1802 level. A bullish breakout of 1.1802 level can expose the EUR/USD price towards the next resistance level of 1.1825. At the same time, the support continues to hold at 1.1786. a breakout of 1.1786 support level exposes the EUR/USD price towards the 1.1760 level today. Let's wait for the ECB policy decision as to the trend heavily relay on the decision. All the best!
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