Euro Holds Close to 1.1700 Following ECB Coverage Stance :: InvestMacro

By RoboForex Analytical Division

The EUR/USD pair declined to round 1.1700 after the European Central Financial institution (ECB) left key rates of interest unchanged, a broadly anticipated resolution that offered little contemporary directional impetus for the one foreign money.

As anticipated, the primary refinancing price was held at 2.15%, with the deposit facility price unchanged at 2.0%. ECB officers reiterated their dedication to a meeting-by-meeting, data-dependent strategy.

Throughout the subsequent press convention, President Christine Lagarde acknowledged that policymakers didn’t talk about both a price hike or a lower at this juncture. She emphasised that the ECB doesn’t have a pre-set path for rates of interest and, given the prevailing excessive uncertainty, can not present ahead steering on future coverage strikes.

In parallel, the central financial institution launched its newest quarterly financial projections. Progress forecasts had been revised upwards to 1.4% for 2025, 1.2% for 2026, and 1.4% for 2027. The inflation outlook for 2026 was additionally adjusted larger, primarily pushed by persistent value pressures within the companies sector.

Technical Evaluation: EUR/USD

H4 Chart:

On the H4 chart, the pair accomplished a corrective rebound to 1.1760 and is now forming a downward impulse concentrating on 1.1706. A break under this stage is anticipated, which might set the subsequent native bearish goal at 1.1640.

This state of affairs is technically confirmed by the MACD indicator. Its sign line is positioned above zero however is pointing sharply downwards, reflecting sustained bearish momentum and the potential for an extra extension of the downtrend.

H1 Chart:

On the H1 chart, the market has completed a primary decline to 1.1705, adopted by a correction to 1.1755. A second downward impulse in the direction of 1.1705 is at present growing. A transparent break under this assist would sign the potential for a 3rd wave of decline, concentrating on the 1.1645 stage as an area goal.

This outlook is supported by the Stochastic oscillator, whose sign line is under the 50 stage and trending firmly downwards.

Conclusion

The euro stays range-bound following a largely uneventful ECB assembly, with the central financial institution’s cautious, data-dependent stance providing little assist. The technical construction factors to additional draw back threat, with a break under quick assist at 1.1705 prone to set off a transfer in the direction of the 1.1640 space.

Disclaimer:

Any forecasts contained herein are based mostly on the creator’s specific opinion. This evaluation might not be handled as buying and selling recommendation. RoboForex bears no accountability for buying and selling outcomes based mostly on buying and selling suggestions and opinions contained herein.