TD says the European Central Bank meetings has offered little new or of note.
They are right, it was pretty much a nothing burger. Comments from analysts at TD (in brief):
- The lack of any policy cues for an upcoming meeting could provide the fuel to get us there, but we expect investors will pivot quickly to a focus on next week's FOMC meeting. In line with this, our ambition for a significant move higher is rather limited. While we see scope for some additional upside potential for EURUSD, we think spot is likely to remain confined to familiar ranges until fresh catalysts emerge.
TD say what would be significance for EUR/USD would be
- a push above last week's high of 1.1881. We think a weekly close above there could begin to change the market's perception of the pair's directional momentum.
- We are willing to consider this week's trough around 1.1750 as a potential base for this cycle. We continue to keep a close eye on the end-March low at 1.1704 as major support, however.
Daily EUR/USD candle chart:
