EURUSD support 1.13616 held on Thursday after the ECB left its three key interest rates unchanged and Christine Lagarde stressed a data-dependent path.
The pair fell before and after the ECB decision. Broad U.S. dollar buying added to the move. However, sellers failed to force a break below the June 26 low at 1.13616.
Thursday’s low reached 1.13635. Buyers then stepped in and lifted the pair off that level. As a result, the market kept a key floor in place even as the near-term reaction stayed bearish.
EURUSD Support 1.13616 Stays in Focus
That level now remains the main line for traders. If sellers break below 1.13616 and hold there, attention shifts to the June low at 1.13238. A sustained move under that point would add to the bearish case and give sellers more control.
The source article said the downside has been contained since June 26. Therefore, a clear move under 1.13616 would mark the start of the next leg lower. It would also push the pair out of the lower end of its recent range.
If support holds, traders will watch 1.13775 on the upside. A move above that level could send the pair back toward the middle of the 1.1362 to 1.1482 trading range.
ECB Leaves Rates Unchanged
The ECB kept all three key rates unchanged, in line with expectations in the source article. Lagarde said future policy decisions will stay data dependent. Meanwhile, the decision was unanimous, though she said some policymakers discussed whether another rate increase should be considered.
The source article also said recent data showed a modest improvement in activity. It added that inflation remains contained beneath the surface. However, policymakers are paying more attention to inflation risks tied to higher energy prices and ongoing geopolitical tensions.
For now, the Governing Council believes inflation remains manageable without more tightening, as long as energy-led price pressure does not spread more widely through the economy.
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Source: InvestingLive
