EUR/USD tests lows near 1.1220 post-ECB decision

The single currency dropped further after the European Central Bank left its monetary policy unchanged at today’s meeting, with EUR/USD currently navigating the 1.1220 area.

EUR/USD now looks to Draghi

Spot stays in the lower end of the daily range after the ECB’s Governing Council left its monetary policy stance unchanged at today’s meeting, broadly in line with initial estimates.

In fact, the ECB left the interest rate on the main refinancing operations at 0.00%, the interest rate on the marginal lending facility and the deposit facility at 0.25% and -0.40%, respectively.

The ECB made no signbificant changes to its usual statement today, as opposed to recent market chatter that expected the central bank to remove some accommodative wording.

Markets’ attention should now shift to the usual press conference by President Mario Draghi ahead of the key testimony by former FBI Chief James Comey, which should keep the buck under pressure.

EUR/USD levels to watch

At the moment, the pair is losing 0.22% at 1.1231 and a breakout of 1.1284 (2017 high Jun.5) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016). On the flip side, the next down barrier emerges at 1.1202 (low Jun.1) followed by 1.1181 (20-day sma) and finally 1.1108 (low May 30).