The euro currency was seen erasing the gains from earlier this week as price closed below the 1.1250 handle. The declines come ahead of today’s European Central Bank’s monetary policy meeting. No changes are expected from the ECB, but investors are keen to see if the central bank will announce more details on the TLTRO II program. The recent downtick in inflation could also see the officials taking a cautious approach to forward guidance.
Will EURUSD Settle Back into the Range?
The currency pair has been trading sideways with the recent gains bringing some life back. However, the close below 1.1250 could potentially trigger further declines depending on how the euro reacts. The short term support is seen at 1.1200. If this support is not strong, the common currency could be seen posting further declines. The lower end of the range at 1.1140 remains the probable downside target.
