The Euro continued to trade in a tight range against the United States dollar as market participants await the European Central Bank monetary policy meeting. In the last meeting, the ECB lowered the growth and inflation estimates. Moreover, the bank adjusted the interest rate forward guidance and now expects the first interest rate hike to occur in 2020 versus the end of 2019 in the prior meeting. As for today's meeting, the bank is widely expected to remain on hold and provide further clarifications on the new TLTROs. As usual, the interest rate decision will be followed by a press conference by President Mario Draghi. We expect him to reiterate the dovish tone of the ECB especially after the significant drastic drop in the Eurozone economic indicators and German bund yields.
The EURUSD is finding support near $1.1255 and resistance near $1.1285. A clear break of the current support level could clear the way towards the next support level of $1.1205 and $1.1180 while a bullish scenario could lead to an upside resistance near $1.1330.
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