ECB "will probably need to go even further"

Yesterday, Bank of France governor Francois Villeroy de Galhau said the European Central Bank "will probably need to go even further", as it has room to act. On the other hand, the German IFO Business Climate Index climbed to 79.5 in May (78.5 expected) from 74.2 in April and Expectations Index bounced to 80.1 (75.0 expected) from 69.4.

From a technical point of view, EUR/USD is posting a slight rebound but remains within a wide triangle pattern even if it stands above its 50-day moving average (in blue). Readers may therefore consider the potential for a new weakness below resistance at 1.0990. The nearest support would be set at horizontal support at Apr. 23 low at 1.0725 and a second one would be set at set at March bottom at 1.0630 in extension.

Source: TradingView, GAIN Capital


Related tags: EUR Forex ECB

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