The European Central Bank (ECB) has ruled out a rapid recovery of the European economy while hinting at boosting stimulus measures.
In an account for its latest monetary-policy meeting, the ECB said: “As demand was considered likely to recover only gradually, a swift V-shaped recovery could probably already be ruled out at this stage.”
The central bank added: “The Governing Council would have to stand ready to adjust the Pandemic Emergency Purchase Program and potentially other instruments if it saw that the scale of the stimulus was falling short of what was needed.”
In face of a lackluster economy and likely more easing measures from the ECB, the euro has come under pressure against the U.S. dollar.
Last Friday. EUR/USD dropped 0.4% to 1.0902.
On an Intraday Chart, EUR/USD has failed to post a sustainable rebound.
A Key Resistance has been formed at 1.0910.
Meanwhile, the Relative Strength Index is subdued in the 30s, showing that momentum is still pointing downwards.
Looking to the downside, a return to the first Support Level at 1.0885 (around the low of last Friday) would expose the second one at 1.0870.