Expectations of a Thursday rate cut on the back of an array of poor economic data in Germany, France and also in the wider euro area sent the euro lower. The soft patch of releases had investors thinking EURUSD will break the 1.11 psychological level and reach fresh lows. However, the ECB opted to keep rates on hold, supporting the beleaguered currency.
Will the 1.11 Support Hold Firm?
A false break below the strong 1.1116 bottom formed as Draghi dialed back on his dovish tone. This reversed the course for EURUSD. The rejection near the June low of 1.1181 came following a bounce from the 50% Stochastic indicator and as bulls started taking profits. As a result, the pair ended the session with a daily Doji bar, and that increases the chances of a bullish reversal.
