By David Wagner
The press conference of the president of the ECB, Christine Lagarde was generally without surprise, as were monetary policy decision and statement released a little earlier, some details have still to react to the markets.
In fact, the EUR/USD pair first increased to a peak at 1.1108, before plunging to a new low annual 1.1059.
Why the Euro has started to grow in the face about Lagarde ?
On the occasion of his opening speech, the president of the ECB has pronounced a sentence, the beginning of which seemed to react to the algorithms of trading based on the news.
Lagarde said that ” there are signs of an increase in inflation “, of the hawkish remarks if we stop here the phrase, but she continued her sentence with ” in line with expectations “, reversing the upward impact on the Euro.
Why the Euro was then immersed ?
Two details that may at least partly explain the decline of the Euro. In the Face of improving economic data since the last ECB meeting, investors were expecting at least a few minor keys “hawkish” in the words of Lagarde, but it has not been, at any level.
The other detail concerns a comment of the president on the climate, stating that the ECB will take into consideration climate change, which, in the eyes of the market, implies an increase in the risk of new stimulus, or at least of the absence of monetary tightening since the fight against climate change will require significant resources in the sprochaines years.
The ECB meeting has had consequences important techniques on the Euro ?
The fall of the Euro following the press conference, Christine Lagarde has made it possible to test the moving average 100 days currently 1.1063 for the first time in almost a month and a half. However, this threshold seems to now serve as support.
If this threshold is eventually broken, the psychological threshold of major 1.10 will become the next target seller logic.
If a rebound is formed from the current thresholds, the moving average 100 hours at 1.1090 and the psychological threshold of 1.11 will form the first resistance, before the moving average 200 hours at 1.1113 and the 200-day moving average at 1.1133.
In the end, it seems to onc that there are more barriers to the upside and to the downside, we had already pointed out this morning before the Euro starts its fall.