The Euro jumped to fresh one-week high against the US dollar at 1.2059 after ECB’s press conference.
Mario Draghi, as expected, avoided big decisions today, pointing at low inflation, which is seen on track to improve and solid economic growth.
Regarding the QE program, which was in focus today, Draghi said that significant degree of stimulus is still needed, leaving bigger decisions for October ECB meeting.
Markets took Draghi’s comments as hawkish and Euro rose to 1.2059, just ahead of 2017 high at 1.2070.
Overall bullish tone also helped, as most remain long Euro. Bullish techs and weak dollar on persisting geopolitical turmoil remain supportive factors for the single currency.
Pullback from fresh session high trigerred on talks on CB sellers on upticks returned below 1.2000 handle, but dips are so far well above initial supports at 1.1946 (daily Tenkan-sen) and 1.1923 (rising 10SMA).
Dip-buying strategy remains favored for now, as north-heading indicators show more room at the upside for retest of 1.2070 high and possible extension higher.
Only close below Tenkan-sen/10SMA pivots would sour near-term tone for deeper pullback.
Res: 1.2059; 1.2070; 1.2100; 1.2164
Sup: 1.1975; 1.1946; 1.1923; 1.1900
