EURUSD seesaws today after a high volatile session yesterday after the ECB kept the interest rates unchanged while decided to expand its bond-buying program and introduced a new lending scheme. The pair register yesterday 280 pips range in one of the most volatile session since 2018. Initially, the pair reached 1.1332 after the ECB decision, but later sellers push the price back to 1.1054, from where it managed to rebound around the 1.12 mark.
Germany Consumer Price Index came in at 0.4% in February in line with forecasts; the yearly CPI came in at 1.7% in line with expectations. The Harmonized Index of Consumer Prices registered at 0.6 in line with forecasts.
ECB’s Governing Council member Villeroy said that ECB is making unlimited liquidity available to banks so they can lend and he added that the ECB package is coherent with the current economic situation.
EURUSD is 0.01% lower at 1.1182 as the pair looking for direction after yesterday’s volatile session. The technical outlook is still positive as the pair yesterday successfully tested the 100-day moving average and managed to rebound. I expect the volatility to continue, and the coronavirus headlines will have a significant impact on EURUSD.
On the downside, the initial support for the pair stands at 1.1152 the daily low. In case the pair breaks below the next support is at 1.1100 the 200-day moving average. Next support stands at 1.1066 the 100-day moving average.
On the flip side, first resistance for EURUSD stands at 1.1221 the daily top. A break above might challenge the next resistance level at 1.1333 the high from yesterday trading session. The next supply zone stands at 1.1366 the high from March 11th session.