Glancing at the EUR/USD chart, you would never guess that the ECB just cut rates for the first time in nearly a year and hinted at negative deposit rates.
The ECB decision was on Thursday but the 55-day moving average supported the knee-jerk decline and the pair has been consolidating.
Since the start of April there have been higher highs and higher lows. Even in the past three days, there have been higher lows. By itself, that isn’t a screaming buy signal but given the dovish rhetoric from the ECB, the ability of the euro to hold the line points to gains ahead.
I wrote about buying the euro ahead of 1.3050 yesterday.
