Being the focus of the European session on Thursday yesterday, the outcome of the European central bank meeting has influenced the movement of the Euro currency towards weekend trading.
The European Central Bank (ECB) kept interest rates unchanged at 0.0% and also maintained its emergency bond buying program at € 1.85 trillion until at least March 2022, but will continue at a ‘slower pace’.
This situation is assessed as not very positive by market analysts because even if the bond purchase rate is reduced, but will extend the implementation of the program for a longer period.
Meanwhile, the strengthening momentum of the US dollar began to fade towards the end of the week following the return of the 10-year US treasury yield to 1.30%.
On the price chart of the EUR/USD pair, the important level of 1.18000 still managed to support the price from the lower decline.
After the bulls tested the Moving Average 50 (MA50) barrier level on the 1 -hour time frame and reached a high of around 1.18400, the price declined towards the 1.18000 level following the reaction to the ECB meeting decision.
However, the lower decline did not succeed in continuing instead the price rebounded making a rise before closing the trade slower at the end of the New York session around the level of 1.18240.
With the outcome of the ECB meeting seen as more dovish, the price is likely to make a bearish attempt to break the 1.18000 support before closing trading this week.
The lower decline will lead to the support level of 1.17000 in trading that continues next week if the US dollar manages to strengthen again taking advantage of Euro pressure.
On the other hand if the 1.18000 level manages to support the price rebound, passing the MA50 barrier will give an early signal of a bullish trend change.
The rally will head back to the 1.19000 level to test the resistance zone reached on the rise until the end of last week.
